Jason Furman, Ron Shadbegian, Jim Stock, Wednesday, February 25, 2015 - 00:00
Laura Grigolon, Mathias Reynaert, Frank Verboven, Saturday, January 10, 2015 - 00:00
Valentina Bosetti, Jeffrey Frankel, Monday, November 24, 2014 - 00:00
Radek Stefanski, Friday, May 30, 2014 - 00:00
No comprehensive database of directly measured fossil-fuel subsidies exists at the international or the sub-national level, yet subsidies may be crucial drivers of global carbon emissions. This column describes a novel method for inferring carbon subsidies by examining country-specific patterns in carbon emission-to-output ratios, known as emission intensities. Calculations for 170 nations from 1980-2010 reveal that fossil-fuel price distortions are enormous, increasing, and often hidden. These subsidies contributed importantly to increasing emissions and lower growth.
Richard S J Tol, Friday, April 25, 2014 - 00:00
The IPCC’s Fifth Assessment Report estimates lower costs of climate change and higher costs of abatement than the Stern Review. However, current UN negotiations focus on stabilising atmospheric concentrations of greenhouse gases at even lower levels than recommended by Stern. This column argues that, given realistic estimates of the rate at which people discount the future, the UN’s target is probably too stringent. Moreover, since real-world climate policy is far from the ideal of a uniform carbon price, the costs of emission reduction are likely to be much higher than the IPCC’s estimates.