Tradable permits for greenhouse gases are growing in popularity as one of the available tools to tackle climate change. How should these be handled in cost-benefit analysis?
According to CERE working paper 2016-14 and its author Per-Olov Johansson, it would be a mistake to value permits at the global marginal damage cost. Also, it would be a mistake to treat permits as a transfer within the private sector. These considerations are key to both researchers and practitioners conducting cost-benefit analysis including tradable permits.
In the Autumn of 2016, Dr Klarizze Anne Martin Puzon joined SLU and CERE as Browaldh fellow. She obtained her graduate in France and was a visiting researcher in Spain. She is interested in resource economics, environmental economics, political economy, and experimental methods.
“What is the effect of the CO2 tax on environmental performance and profitability of firms? Does including emissions in productivity measurement of the industrial firm matter? Did the introduction of the EU ETS spur technological development in the Swedish industrial firm?” Which air pollutant inhibits production most when regulated?
A new book by researchers Rolf Färe, Shawna Grosskopf, Tommy Lundgren, Per-Olov Marklund, and Wenchao Zhou analyses firm level data from 1990 to 2008 to evaluate the role of climate policy on Swedish industrial firms’ environmental and economic performance. Sweden is an interesting case worth to study with many learned lessons when it comes to environmental policy design and implementation.
CERE’s Kelly de Bruin went to Montreal, Canada to write a short paper but as enthusiasm grew, so did the goal and a new model saw the light of day: The Mitigation Adaptation Geo-Engineering Economy (MAGE) model. A model to rule them all, well at least mitigation, adaptation and geo-engineering. Here Kelly tells us more about her visit to Canada and the model.