Eugenio J. Miravete, Maria J. Moral, Jeff Thurk, 30 September 2015

Diesel vehicles have never been popular in the US, but have dominated sales in Europe. This column presents new evidence explaining why this is the case. A change in preferences and the numerous competing suppliers benefited the diffusion of diesel cars. But more important was a European environmental policy that favoured CO2 reductions. As diesel vehicles are only produced by European manufacturers, this policy provided a competitive advantage for domestic producers equivalent to a 20% import duty.

Brian Flannery, Jaime de Melo, 28 September 2015

Climate monitoring organisations report that 2015 is set to break global temperature records. Meanwhile, this December ministers will convene at the UN meeting in Paris and the WTO meeting in Nairobi to continue climate negotiations. This column reports on progress to date, arguing that small steps forward are being taken, but they are not sufficient.

Richard S J Tol, 17 September 2015

The international climate negotiations have moved away from targets such as keeping warming below 2°C in favour of more realistic goals. This column presents new evidence on the economic impacts of climate change. The initial impacts of climate change on welfare might be positive, but in the long run the negative effects dominate, and will be substantially higher in poor countries. Poverty reduction therefore complements greenhouse gas emissions reduction as a means to reduce the impacts of climate change.

Stephen P. Holland, Erin T. Mansur, Nicholas Z. Muller, Andrew J. Yates, 09 August 2015

Many countries provide subsidies and tax incentives for the purchase of electric cars, since it’s believed electric vehicles have various benefits. This column argues that it is difficult to justify a large uniform subsidy based on environmental benefits alone. In some states in the US, the subsidy should indeed be large and positive, but in others it should be large and negative. This conclusion may need to be revisited in the future as the electricity grid becomes cleaner.

Arvind Subramanian, 16 July 2015

In December, the 21st United Nations Climate Change Conference will be held in Paris. This column discusses how India – despite its image as a recalcitrant negotiator – has exhibited considerable initiative towards improving its environmental footprint in recent years. Along with a host of actions targeting emissions, deforestation, and alternative energy source, India has surpassed many developed nations in responding to recent declines in international energy prices. These efforts mean India will be able to make a substantial contribution towards the success of the negotiations in Paris

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