The Economics of Climate Change Mitigation. Policies and Options for Global Action beyond 2012

This book explores feasible ways to abate them at least cost. Through quantitative analysis, it addresses key climate policy issues including: an ideal set of climate policy tools; the size of the economic and environmental costs of incomplete country or sector coverage of climate change mitigation policies; how to concretely develop a global carbon market; the case for, and what can we reasonably expect from, R&D and technology support policies; and the incentives for major emitting countries to join a climate change mitigation agreement.



Against the background of a projected doubling of world greenhouse gas emissions by mid-century, this book explores feasible ways to abate them at least cost. Through quantitative analysis, it addresses key climate policy issues: • What would an ideal set of climate policy tools look like? • How large are the economic and environmental costs of incomplete country or sector coverage of climate change mitigation policies? What are the pros and cons of policy tools to broaden that coverage, such as international sector-wide agreements or border-tax adjustments? What are the main challenges in incorporating a mechanism to reduce emissions from deforestation and forest degradation? • How can we concretely develop a global carbon market? • What is the case for, and what can we reasonably expect from, R&D and technology support policies? • How great are the incentives for major emitting countries to join a climate change mitigation agreement, in terms of the costs and benefits (including the co-benefits from reduced local air pollution and improved energy security) of action? How can they be enhanced? How can international transfers of resources and technologies broaden support for action?

Table of Contents
Acronyms and abbreviations
Executive summary
Chapter 1. Greenhouse Gas Emissions and the Impact of Climate Change
Introduction
1.1. Past emission trends
1.2. Projected emission trends
1.3. The consequences of climate change
1.4. Risks and uncertainties
1.5. Scenarios for stabilising GHG concentration
Chapter 2. The Cost-Effectiveness of Climate Change Mitigation Policy Instruments
Introduction
2.1. A simple framework for thinking about climate mitigation policy instruments
2.2. Instruments to mitigate climate change
2.3. Interactions across policy instruments
Chapter 3. Mitigating Climate Change in the Context of Incomplete Carbon Pricing Coverage: Issues and Policy Options
Introduction
3.1. Implications of incomplete coverage for the costs and effectiveness of mitigation action
3.2. Implications for carbon leakage and competitiveness
3.3. Pros and cons of policy alternatives to address leakage and competitiveness issues
3.4. Incorporating a deforestation and forest degradation into an international mitigation action plan
Chapter 4. Towards Global Carbon Pricing
Introduction
4.1. Removing environmentally-harmful energy subsidies
4.2. The direct linking of emission trading schemes
4.3. The role of emission crediting mechanisms and related challenges
4.4. The potential and limitations of sectoral approaches
4.5. Regulatory issues and the role of financial markets
Chapter 5. Technology and R&D Policies
Introduction
5.1. Recent spending trends in energy-related R&D
5.2. Policy instruments to stimulate R&D and technology deployment
Chapter 6. Regional Incentives for Global Action
Introduction
6.1. Broad-based international mitigation and incentives for action
6.2. Enhancing participation incentives through co-benefits of mitigation policies
6.3. Enhancing participation incentives through financial transfers
Chapter 7. Building Political Support for Global Action
Introduction
7.1. A review of the instruments currently in use
7.2. Comparing mitigation costs and emission reductions across countries
7.3. Policies to build global support for action
References
Annex 1. Long-Run GDP Growth Framework and Scenarios for the World Economy
Annex 2. An Overview of the OECD ENV-Linkages Model