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Confronting the Climate Challenge
Without significant reductions of greenhouse gas emissions, climate change will cause substantial damage to the environment and the economy. The scope of the threat demands a close look at the policies capable of reducing the harm. Confronting the Climate Challenge presents a unique framework for evaluating the impacts of a range of U.S. climate-policy options, both for the economy overall and for particular household groups, industries, and regions. Lawrence Goulder and Marc Hafstead focus on four alternative approaches for reducing carbon dioxide emissions: a revenue-neutral carbon tax, a cap-and-trade program, a clean energy standard, and an increase in the federal gasoline tax. They demo...
Fuel Taxes and the Poor
Fuel Taxes and the Poor challenges the conventional wisdom that gasoline taxation, an important and much-debated instrument of climate policy, has a disproportionately detrimental effect on poor people. Increased fuel taxes carry the potential to mitigate carbon emissions, reduce congestion, and improve local urban environment. As such, higher gasoline taxes could prove to be a fundamental part of any climate action plan. However, they have been resisted by powerful lobbies that have persuaded people that increased fuel taxation would be regressive. Reporting on examples of over two dozen countries, this book sets out to empirically investigate this claim. The authors conclude that while the...
Canada’s Carbon Price Floor
The pan-Canadian approach to carbon pricing, announced in October 2016, ensures that carbon pricing applies throughout Canada in 2018, with increasing stringency over time to reduce emissions. Canadian provinces and territories have the flexibility to either implement an explicit price-based system—with a minimum price of CAN $10 per tonne of carbon dioxide equivalent in 2018, increasing to CAN $50 per tonne by 2022—or an equivalently scaled emissions trading system. This paper discusses the rationale for, and design of, the price floor requirement; its (provincial-level) environmental, fiscal, and economic welfare impacts; monitoring issues; and (national-level) incidence. The general conclusion is that the welfare costs and implementation issues are manageable, and pricing provides significant new revenues. A challenge is that the floor price by itself appears well short of what will be needed by 2030 for Canada’s Paris Agreement pledge.
The Spirit of Green
From a Nobel Prize–winning pioneer in environmental economics, an innovative account of how and why “green thinking” could cure many of the world’s most serious problems—from global warming to pandemics Solving the world’s biggest problems—from climate catastrophe and pandemics to wildfires and corporate malfeasance—requires, more than anything else, coming up with new ways to manage the powerful interactions that surround us. For carbon emissions and other environmental damage, this means ensuring that those responsible pay their full costs rather than continuing to pass them along to others, including future generations. In The Spirit of Green, Nobel Prize–winning economi...
The Impact of Urban Spatial Structure on Travel Demand in the United States
The authors combine measures of urban form and public transit supply for 114 urbanized areas with the 1990 Nationwide Personal Transportation Survey to address two questions: (1) How do measures of urban form, including city shape, road density, the spatial distribution of population, and jobs-housing balance affect the annual miles driven and commute mode choices of U.S. households? (2) How does the supply of public transportation (annual route miles supplied and availability of transit stops) affect miles driven and commute mode choice? The authors find that jobs-housing balance, population centrality, and rail miles supplied significantly reduce the probability of driving to work in citie...
Off and Running?
The authors describe the evolution of relative wages in five Latin American countries-Argentina, Brazil, Chile, Colombia, and Mexico. They use repeated cross-sections of household surveys, and decompose the evolution of relative wages into factors associated with changes in relative supply and relative demand. The authors have three main conclusions: 1) Increases in the relative wages of the most skilled (university-educated) workers took place concurrently with increases in their relative abundance in all of the countries except Brazil. This is strong evidence of increases in the demand for skilled workers. 2) Increases in the wage bill of skilled workers occurred largely within sectors, an...
How Large Are Global Energy Subsidies?
This paper provides a comprehensive, updated picture of energy subsidies at the global and regional levels. It focuses on the broad notion of post-tax energy subsidies, which arise when consumer prices are below supply costs plus a tax to reflect environmental damage and an additional tax applied to all consumption goods to raise government revenues. Post-tax energy subsidies are dramatically higher than previously estimated, and are projected to remain high. These subsidies primarily reflect under-pricing from a domestic (rather than global) perspective, so even unilateral price reform is in countries’ own interests. The potential fiscal, environmental and welfare impacts of energy subsidy reform are substantial.
Cameroon
Selected Issues
Agriculture in the Doha Agenda
The author looks at the OECD domestic political economy associated with ongoing WTO farm negotiations, focusing on the OECD-based coalitions which could be helpful for WTO negotiators. Support from individual final consumers and taxpayers is far from guaranteed because consumers are spending less and less on food, and because taxpayers support, more or less willingly, non-trade concerns, such as environment or food safety, that they tend (wrongly) to associate with domestic farmers. As a result, trade negotiators should look at other allies. A natural candidate is a powerful group of consumers-the agribusiness industries-for which a reduction of the still high protection of their products under the Doha Round requires a corresponding reduction of protection in their farm inputs. They should also talk to farmers, hence sharpen their arguments, in particular by focusing on the distinction between small and large farmers, the latter being by far the main beneficiaries of the current OECD farm protectionist policies.
