Climate Change Policy & the Natural Gas Transmission Sector

Various emission reduction strategies are proposed to manage climate change in the U.S. This applied capstone evaluates the most likely policy options considering impacts and benefits to the natural gas transmission sector (NGT). It examines a case-study including a comparison of policy options to recommend the most beneficial program to the NGT sector. Two conclusions of major importance are: a federally preempted cap-and-trade program would be the most cost-effective for the NGT sector and the NGT sector should not be the point of regulation of any climate policy. Recommendations, strategies, and costs for implementation of a compliance plan for a federally preempted cap-and-trade program were developed as a tool for NGT companies as part of this applied capstone project.

EU 2020 Renewable Energy Goals Insufficient. IES Policy Brief Issue 2012/01/January 2012

Summary. It is clear that any action to combat climate change must involve extensive efforts in reducing the greenhouse gas (GHG) emissions from the energy sector. In the EU, nearly 80% of total GHG emissions come from the energy sector (European Commission, 2011, p. 21). Any credible action within the EU on combating climate change therefore requires deep shifts in the way we produce and use our energy. This paper highlights that renewable energy policies to 2020 are insufficient to meet the EU’s long-term climate policy objectives of reducing GHG emissions by between 80 and 95% by 2050, and thereby aiming to avoid an increase in global temperatures of more than 2°C. Such an ambition would likely require a very high share of renewable energy (in the range of 80 to 100%) in the overall energy mix of the EU, given current uncertainties about the feasibility of potential technological developments (e.g. carbon capture and storage technology).

Commercial policy in war time and after; a study of the application of democratic ideas to international commercial relations,

Reprinted in part from various periodicals.

International environmental and development policy cooperation and the transition process of the Central and Eastern European countries

The political and economic changes in countries of the Central and Eastern European region during the recent two decades had significant implications on their participation in international environmental policy-making. These changes were motivated by the changing international political priorities and economic interests, realization of their part in the "common but differentiated responsibility" for the global environmental processes and the relatively modest capacities for international development cooperation. The situation of these countries was acknowledged by the international community by granting specific provisions to these "economies in transition" in international environmental policy mechanisms. In spite of the rapidly diverging external relations of the various groups of these countries, to some extent and in different forms the transition phase is still prevailing and has its effect on the ongoing international environmental negotiations. The paper describes the background of these changes, demonstrates the specific provisions for these countries that made possible their participation in the common efforts to tackle the emerging global and regional environmental problems by acceding to the relevant international mechanisms.

The Political Economy of Climate Adaptation and Environmental Health: The Case of Ethiopia

The environment affects our health, livelihoods, and the social and political institutions within which we interact. Indeed, nearly a quarter of the global disease burden is attributed to environmental factors, and many of these factors are exacerbated by global climate change. Thus, the central research question of this dissertation is: How do people cope with and adapt to uncertainty, complexity, and change of environmental and health conditions? Specifically, I ask how institutional factors, risk aversion, and behaviors affect environmental health outcomes. I further assess the role of social capital in climate adaptation, and specifically compare individual and collective adaptation. I then analyze how policy develops accounting for both adaptation to the effects of climate and mitigation of climate-changing emissions. In order to empirically test the relationships between these variables at multiple levels, I combine multiple methods, including semi-structured interviews, surveys, and field experiments, along with health and water quality data. This dissertation uses the case of Ethiopia, Africa’s second-most populous nation, which has a large rural population and is considered very vulnerable to climate change. My fieldwork included interviews and institutional data collection at the national level, and a three-year study (2012-2014) of approximately 400 households in 20 villages in the Ethiopian Rift Valley. I evaluate the theoretical relationships between households, communities, and government in the process of adaptation to environmental stresses. Through my analyses, I demonstrate that water source choice varies by individual risk aversion and institutional context, which ultimately has implications for environmental health outcomes. I show that qualitative measures of trust predict cooperation in adaptation, consistent with social capital theory, but that measures of trust are negatively related with private adaptation by the individual. Finally, I describe how Ethiopia had some unique characteristics, significantly reinforced by international actors, that led to the development of an extensive climate policy, and yet with some challenges remaining for implementation. These results suggest a potential for adaptation through the interactions among individuals, communities, and government in the search for transformative processes when confronting environmental threats and climate change.

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.

Too many presidents "spoil the broth"?- What role for the European Commission in global climate change politics?

The European Union is the only supranational organisation to have both implemented ‘domestic’ climate change policy and provided leadership for the international community on adaptation and mitigation measures. Although the competence for action in climate change is shared between the national governments and the supranational level of the European Union, on behalf of the EU the European Commission has played a prominent role in international climate change negotiations. The Lisbon Treaty (in force December 2009) brought a number of changes to the institutional framework of the European Union, most significantly to the European Council and the external role of the EU. These changes appear to have added to the complexity which surrounds issues of the external representation of the EU and not simplified them – are there too many ‘Presidents’ of these institutions vying for a role? This paper questions the extent to which these changes will impact on the Commission headed by Jose Manuel Barroso, Barroso II Commission (2009-2014), particularly on Barroso’s ability to provide leadership on ‘domestic’ climate change policy and hence direction to the approach which the EU takes in global climate change politics.

Promoting an agenda for nuclear weapons elimination: The Canberra Commission and dilemmas of disarmament

This paper examines the role of the Canberra Commission in terms of consolidating and influencing the agenda on international negotiations towards the elimination of nuclear weapons. The Commission's Report is significant for two main reasons. First, it represents a unique form of disarmament diplomacy by the Australian Government which combined the post-Cold War international climate of security cooperation with the foreign policy aspirations of an activist middle power. Second, the Report refutes the strategic, technological and political arguments against nuclear elimination in a comprehensive and convincing manner, arguing that without elimination, the world faces increased threats of nuclear proliferation and nuclear terrorism. This paper thus concludes that the Canberra Commission has been instrumental in strengthening the taboo against the possession, testing or use of nuclear weapons.

Evaluation of dynamic pass-through of carbon prices into electricity prices – a cointegrated VECM analysis

This paper addresses the impact of the CO2 opportunity cost on the wholesale electricity price in the context of the Iberian electricity market (MIBEL), namely on the Portuguese system, for the period corresponding to the Phase II of the European Union Emission Trading Scheme (EU ETS). In the econometric analysis a vector error correction model (VECM) is specified to estimate both long–run equilibrium relations and short–run interactions between the electricity price and the fuel (natural gas and coal) and carbon prices. The model is estimated using daily spot market prices and the four commodities prices are jointly modelled as endogenous variables. Moreover, a set of exogenous variables is incorporated in order to account for the electricity demand conditions (temperature) and the electricity generation mix (quantity of electricity traded according the technology used). The outcomes for the Portuguese electricity system suggest that the dynamic pass–through of carbon prices into electricity prices is strongly significant and a long–run elasticity was estimated (equilibrium relation) that is aligned with studies that have been conducted for other markets.

Clearing the cloudy crystal balls: Hybrid modelling for energy and climate change mitigation scenarios – A case study for Portugal

Dissertação para obtenção do Grau de Doutor em Ambiente

Global Warming And Extreme Events: Rethinking The Timing And Intensity Of Environmental Policy

The possibility of low-probability extreme events has reignited the debate over the optimal intensity and timing of climate policy. In this paper we therefore contribute to the literature by assessing the implications of low-probability extreme events on environmental policy in a continuous-time real options model with “tail risk”. In a nutshell, our results indicate the importance of tail risk and call for foresighted pre-emptive climate policies.

Policy Shocks and Contract Renegotiation: Who Gets Raked Over the Coals?

Changes in climate policy have large influence on businesses. Firms anticipate and respond to such changes, but what if they have already engaged in a longterm relationship with other firms or customers at the time of policy change? For example, coal supply to power stations is typically based on long-term contracts, while the nature of the buyer-supplier relationship may well be affected substantially by climate regulations. However, there has been little evidence on whether or how firms amend their contractual agreements in response to a change in policy.

Time is Running Out: The 2°C Target and Optimal Climate Policies

The quintessence of recent natural science studies is that the 2 degrees C target can only be achieved with massive emission reductions in the next few years. The central twist of this paper is the addition of this limited time to act into a non-perpetual real options framework analysing optimal climate policy under uncertainty. The window-of-opportunity modelling setup shows that the limited time to act may spark a trend reversal in the direction of low-carbon alternatives. However, the implementation of a climate policy is evaded by high uncertainty about possible climate pathways.

Dark Clouds or Silver Linings? Knightian Uncertainty and Climate Change

This paper examines the impact of Knightian uncertainty upon optimal climate policy through the prism of a continuous-time real option modelling framework. We analytically determine optimal intertemporal climate policies under ambiguous assessments of climate damages. Additionally, numerical simulations are provided to illustrate the properties of the model. The results indicate that increasing Knightian uncertainty accelerates climate policy, i.e. policy makers become more reluctant to postpone the timing of climate policies into the future.