Carbon leakage revisited: unilateral climate policy with directed technical change

Using a stylized theoretical model, we argue that current economic analyses of climate policy tend to over-estimate the degree of carbon leakage, as they abstract from the effects of induced technological change. We analyse carbon leakage in a two-country model with directed technical change, where only one of the countries enforces an exogenous cap on emissions. Climate policy induces changes in relative prices, that cause carbon leakage through a terms-of-trade effect. However, these changes in relative prices also affect the incentives to innovate in different sectors. This leads to a counterbalancing induced-technology effect, which always reduces carbon leakage. We therefore conclude that the leakage rates reported in the literature may be too high, as these estimates neglect the effect of price changes on the incentives to innovate.

Expanding Agri-Food Production and Employment in the Presence of Climate Policy Constraints: Quantifying the Trade-Off in Ireland

This chapter explores the trade-off between competing objectives of employment creation and climate policy commitments in Irish agriculture. A social accounting matrix (SAM) multiplier model is linked with a partial equilibrium agricultural sector model to simulate the impact of a number of GHG emission reduction scenarios, assuming these are achieved through a constraint on beef production. Limiting the size of the beef sector helps to reduce GHG emissions with a very limited impact on the value of agricultural income at the farm level. However, the SAM multiplier analysis shows that there would be significant employment losses in the wider economy. From a policy perspective, a pragmatic approach to GHG emissions reductions in the agriculture sector, which balances opportunities for economic growth in the sector with opportunities to reduce associated GHG emissions, may be required.

UN 2006 Climate Change Conference: a confidence building step?

An analysis of the UN 2006 COP.

How much risk ought we to take? Exploring the possibilities of risk-sensitive consequentialism in the context of climate engineering

When it comes to assessing the deontic status of acts and policies in the context of risk and uncertainty, moral theories are often at a loss. In this paper we hope to show that employing a multi-dimensional consequentialist framework provides ethical guidance for decision-making in complex situations. The paper starts by briefly rehearsing consequentialist responses to the issue of risk, as well as their shortcomings. We then go on to present our own proposal based on three dimensions: wellbeing, fairness and probability. In the last section we apply our approach to a comparison of different climate policy options, including stratospheric solar-radiation management.

National climate policies across Europe and their impacts on cities strategies

Globally, efforts are underway to reduce anthropogenic greenhouse gas emissions and to adapt to climate change impacts at the local level. However, there is a poor understanding of the relationship between city strategies on climate change mitigation and adaptation and the relevant policies at national and European level. This paper describes a comparative study and evaluation of cross-national policy. It reports the findings of studying the climate change strategies or plans from 200 European cities from Austria, Belgium, Estonia, Finland, France, Germany, Ireland, Italy, Netherlands, Spain and the United Kingdom. The study highlights the shared responsibility of global, European, national, regional and city policies. An interpretation and illustration of the influences from international and national networks and policy makers in stimulating the development of local strategies and actions is proposed. It was found that there is no archetypical way of planning for climate change, and multiple interests and motivations are inevitable. Our research warrants the need for a multi-scale approach to climate policy in the future, mainly ensuring sufficient capacity and resource to enable local authorities to plan and respond to their specific climate change agenda for maximising the management potentials for translating environmental challenges into opportunities.

Assessing the Transaction Costs of Firms in the EU ETS: Lessons form Ireland

Until now, there has been little empirical evidence that EU Emissions Trading Scheme (ETS) transaction costs are incurred at firm level. The transaction costs (internal costs, capital costs, consultancy and trading costs) incurred by Irish firms under the EU ETS during its pilot phase (2005-2007) were measured and analysed. Evidence for the sources of transaction costs, their magnitude and the distribution of costs shows that these were mainly administrative in nature. Considerable variation in costs was found due to economies of scale, as the costs per tonne of CO2 were lower for participants with larger allocations. For the largest firms - accounting for over half the emissions - average transaction costs were €0.05 per tonne. However, for small firms, average transaction costs were €2.02 - over 18% of the current allowance price. This supports the concerns that transaction costs are excessive for smaller participants. The immediate policy implication is that additional attention will be needed to address different sizes of firms, number of installations per firm, and the size of the initial allocations.

Retrospective assessment of dryland soil stability in relation to grazing and climate change

Accelerated soil erosion is an aspect of dryland degradation that is affected by repeated intense drought events and land management activities such as commercial livestock grazing. A soil stability index (SSI) that detects the erosion status and susceptibility of a landscape at the pixel level, i.e., stable, erosional, or depositional pixels, was derived from the spectral properties of an archived time series (from 1972 to 1997) of Landsat satellite data of a commercial ranch in northeastern Utah. The SSI was retrospectively validated with contemporary field measures of soil organic matter and erosion status that was surveyed by US federal land management agencies. Catastrophe theory provided the conceptual framework for retrospective assessment of the impact of commercial grazing and soil water availability on the SSI. The overall SSI trend was from an eroding landscape in the early drier 1970s towards stable conditions in the wetter mid-1980s and late 1990s. The landscape catastrophically shifted towards an extreme eroding state that was coincident with the “The Great North American Drought of 1988”. Periods of landscape stability and trajectories toward stability were coincident with extremely wet El Niño events. Commercial grazing had less correlation with soil stability than drought conditions. However, the landscape became more susceptible to erosion events under multiple droughts and grazing. Land managers now have nearly a year warning of El Niño and La Niña events and can adjust their management decisions according to predicted landscape erosion conditions.

Northern Ireland's Consent to the Climate Change Act 2008: An Illusion?

This is the first in a two-part analysis of Northern Ireland’s engagement with the climate governance regime created by the UK Climate Change Act 2008. It contends that UK devolution has shaped this national regime and may itself be shaped by the national low carbon transition, particularly in the case of the UK’s most devolved region. In essence, while Northern Ireland’s consent to the application of the Act appeared to represent a long-term commitment to share power in the interests of present and future generations and thus to devolution itself, this first article argues that it was also potentially illusory. The second article argues that making an effective commitment to climate governance will require its devolved administration to allow constitutional arrangements designed for conflict resolution to mature. Failure to do so will have important implications for the UK’s putative ‘national’ low carbon transition and the longer term viability of devolution in the region.

Committing to Effective Climate Governance in Northern Ireland: A Defining Test of Devolution

This is the second of a two-part analysis exploring the interaction between UK devolution and governance of the national low carbon transition. It argues that devolution shaped the national climate governance regime created by the Climate Change Act 2008, but will itself be tested and even altered as the traction of the low carbon imperative intensifies. This dynamic is explored in the specific context of the UK’s most devolved region. The first article argued that devolution facilitated and arguably forced Northern Ireland’s devolved administration to give a highly qualified and potentially illusory consent to the regional application of the UK Act. The second article argues that making a more effective commitment to climate governance will be a defining test of its devolution arrangements but will require constitutional arrangements designed for conflict resolution to mature. Failure to do so will have important implications for the UK’s putative ‘national’ low carbon transition and the longer-term viability of devolution in the region.

The Politics of Actually Existing Unsustainability:Human Flourishing in a Climate-Changed, Carbon-Constrained World

Going against both the naive techno-optimist of ‘greening business as usual’ and a resurgent ‘catastrophism’ within green thinking and politics, The Politics of Actually Existing Unsustainability offers an analysis of the causes of unsustainability and diminished human flourishing. The books locates the causes of unsustainability in dominant capitalist modes of production, debt-based consumer culture, the imperative for orthodox economic growth and the dominant ideology of neoclassical economics. It suggests that valuable insights into the causes of and alternatives to unsustainability can be found in a critical embracing of human vulnerability and dependency as both constitutive and ineliminable aspects of what it means to be human. The book defends resilience, the ability to ‘cope with’ rather than somehow ‘solve’ vulnerability. The book offers a trenchant critique of the dominant neoclassical economic ‘groupthink’, viewing it not as some value-neutral form of ‘expert knowledge’, but as a thoroughly ideological ‘common sense’. Outlining a green political economic alternative replacing economic growth with economic security, it argues economic growth has done its work in the minority, affluent world, which should now focus on improving human flourishing, lowering socio-economic equality and fostering solidarity as part of a new re-orientation of public policy. Complementing this, a, ‘green republicanism’ is developed as an innovative and original contribution to contemporary debates on a ‘post-growth’ economy and society. The Politics of Actually Existing Unsustainability draws widely from a range of disciplines and thinkers, from cultural critic Susan Sontag to the critical theory of the Frankfurt School, contemporary debates in green political thinking, and the latest thinking in heterodox and green economics, to produce a highly relevant, timely, and provocatively original statement on the human predicament in the twenty-first century.

Climate change, Hans Jonas and indirect investors

This article considers how corporate behaviour in relation to climate change might be reconfigured and the role that indirect investors might play in this reconfiguring. The article suggests that the consequences of climate change are serious enough that indirect investors might be prevailed upon, using a model of behaviour suggested by the work of Hans Jonas, to pressure institutional investors into demanding changes in corporate policy towards climate change. Jonas' work represents a plea for the recognition and acceptance of responsibility in the face of nature's vulnerability and humanity's power over technology. The article suggests that this ethic can be operationalised in relation to corporate governance by building on the changes in the pattern of investment holdings that have taken place in large public companies in the preceding two decades or so. The idea is to appeal to individuals who may perceive themselves as currently being outsiders – or at least only distant stakeholders in relation to the corporation – to realise the responsibility vested in them as beneficiaries through their interest in pension funds, life assurance policies, annuities and other arm's-length financial arrangements with corporations. The hope is that these individuals may, through the influence of a model of responsibility, become active investors and beneficiaries interested in corporate practices that impact on climate change and, encourage others to do likewise.

Opening the climate envelope reveals no macroscale associations with climate in European birds

Predicting how species distributions might shift as global climate changes is fundamental to the successful adaptation of conservation policy. An increasing number of studies have responded to this challenge by using climate envelopes, modeling the association between climate variables and species distributions. However, it is difficult to quantify how well species actually match climate. Here, we use null models to show that species-climate associations found by climate envelope methods are no better than chance for 68 of 100 European bird species. In line with predictions, we demonstrate that the species with distribution limits determined by climate have more northerly ranges. We conclude that scientific studies and climate change adaptation policies based on the indiscriminate use of climate envelope methods irrespective of species sensitivity to climate may be misleading and in need of revision.

Climate Change Mitigation and Intergenerational Justice

Existing climate change mitigation policies are particularly concerned with the reconciliation of two seemingly conflicting aims: environmental protection and economic efficiency. The normative principles underlying these policies meanwhile focus on two central ideas: fair burden-sharing and agents' responsibility. However, both existing policy instruments and their supporting philosophical principles are highly problematic in terms of intergenerational justice and truly effective climate change mitigation. Three competing conceptions for allocating and distributing the burdens of climate change mitigation (cap-and-trade schemes, carbon emission taxes, and personal ecological space quotas) and their compatibility with principles of intra- and intergenerational justice are analysed and evaluated. None of the proposed instruments is able to satisfy the demands of effective mitigation and egalitarian justice on its own, which suggests that existing proposals for the distribution of emission rights and climate change-related costs need to be supported by a thicker account of intergenerational justice.