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The Distributional Effects of Climate Policies
Policymakers will not accept forceful decarbonisation policies if they lead to visibly increasing inequality within their societies. The distributive effects of climate policies need to be addressed. This report provides a selective review of recent academic literature and experience on the distributional effects of climate policies.
The Macroeconomics of Decarbonisation
Decarbonisation is the reduction of carbon dioxide emissions using low carbon power sources, lowering output of greenhouse gasses into the atmosphere. This is essential to meet global temperature standards set by international climate agreements. To limit global warming to 1.5°C, hence avoiding the worst-case scenarios predicted by climate science, the world economy must rapidly reduce its emissions and reach climate neutrality within the next three decades. This will not be an easy journey. Shifting away from carbon-intensive production will require a historic transformation of the structure of our economies. Written by a team of academics linked to the European think tank Bruegel, The Macroeconomics of Decarbonisation provides a guide to the macroeconomic fundamentals of decarbonisation. It identifies the major economic transformations, both over the long- and short-run, and the roadblocks requiring policy intervention. It proposes a macroeconomic policy agenda for decarbonisation to achieve the climate goals of the international community.
Remaking Europe
How well are European firms responding to the new opportunities for growth, and in which global value chains are they developing these new activities? The policy discussion on the future of manufacturing requires an understanding of the changing role of manufacturing in Europe's growth agenda.
The Macroeconomics of Decarbonisation
This book provides all the necessary elements to understand the macroeconomic implications of decarbonisation.
Energy Security in the Wider Black Sea Area – National and Allied Approaches
The need for reliable energy supplies continues to increase with global development, and so energy security seems certain to remain a global challenge for the foreseeable future. The Black Sea area is now a major producer of energy for the wider region and beyond. This book presents the 12 papers delivered at the NATO Advance Research Workshop (ARW) Energy Security in the Wider Black Sea Area – National and Allied Approaches, held in Plovdiv, Bulgaria, in November 2011. The workshop, which was attended by a balanced mix of international experts, focused on research concerning crucial aspects of energy security and the role of NATO, and covered issues such as energy security as part of nati...
Can Energy Subsidies Help Slay Inflation?
Many countries have used energy subsidies to cushion the effects of high energy prices on households and firms. After documenting the transmission of oil supply shocks empirically in the United States and the Euro Area, we use a New Keynesian modeling framework to study the conditions under which these policies can curb inflation. We first consider a closed economy model to show that a consumer subsidy may be counterproductive, especially as an inflation-fighting tool, when applied globally or in a segmented market, at least under empirically plausible conditions about wage-setting. We find more scope for energy subsidies to reduce core inflation and stimulate demand if introduced by a small...
The EU’s Carbon Border Adjustment Mechanism (CBAM)
There is a growing policy trend that in addressing climate change, various trade measures must be implemented to enhance the sustainable practices of global stakeholders. As a response to level up the playing field of global trade partners in enhancing sustainability, the EU recently introduced the European Union (EU) Carbon Border Adjustment Mechanism (CBAM), which will impose a carbon price on certain imports, namely, electricity, aluminium, cement, iron and steel, and fertilizer, to the EU. The EU CBAM may, however, cause trade disputes among World Trade Organization (WTO) members. EU and ASEAN trade relations are currently on an upswing trajectory, and there are therefore some risks involved in implementing the EU CBAM in the ASEAN region. At the same time, despite the perceived adverse effects, there is room for improvement in communicating EU CBAM implementation in ASEAN. The EU should introduce more calibrated approaches to implementing the EU CBAM in ASEAN, particularly considering the political and strategic risks, economic development and capacity, and climate ambitions of individual ASEAN countries.
Trade, Labour and Sustainable Development
Examining the relationship between trade and labour regulation in light of the pressing need to promote sustainable development, Tonia Novitz interrogates how international legal architecture could be reformed so that no one in the world of work gets left behind. She highlights the dangers of pursuing labour and environmental issues on parallel tracks without recognising how they interact, ultimately arguing for the crafting of the content and application of trade rules through participatory processes, which involve the inclusive representation of all sectors of the labour market and all parts of the world.
A Green and Global Europe
After years of existential crisis, Europe has found a new raison d’être: the European Green Deal and the energy transition that lies at its core. This green Europe represents a normative vision, an economic growth strategy, as well as a route to a political Union that would enhance EU integration and legitimacy. But it can only be realized if it addresses head-on the social, economic, political and geopolitical ramifications of this epochal change. In A Green and Global Europe, Nathalie Tocci explains how the unprecedented nature of the current energy transition represents both a unique opportunity and a huge challenge to Europe’s future prosperity. The EU, she argues, must not act in isolation or ignore the adverse effects of the transition on Member States and neighbours. It must also address the global cleavages that may arise with China, the transatlantic relationship and the Global South as a result of the EU’s green agenda. By adopting a truly global approach to the energy transition, Europe can deliver on its responsibilities to people and planet alike, and avoid unleashing social, economic and security problems that could come biting back at the Union.
Can Green Sustain Growth?
Green growth has proven to be politically popular, but economically elusive. Can Green Sustain Growth? asks how we can move from theoretical support to implementation, and argues that this leap will require radical experimentation. But systemic change is costly, and a sweeping shift cannot be accomplished without political support, not to mention large-scale cooperation between business and government. Insightful and timely, this book brings together eight original, international case studies to consider what we can learn from the implementation of green growth strategies to date. This analysis reveals that coalitions for green experimentation emerge and survive when they link climate solutions to specific problems with near-term benefits that appeal to both environmental and industrial interests. Based on these findings, the volume delivers concrete policy recommendations for the next steps in the necessary shift toward sustainable prosperity.
