As the world economy slowly recovers from one of the longest and most severe global slowdowns in history, there has been growing interest in how fluctuations in economic activity interact with climate change policy. Of particular interest is how carbon pricing instruments, such as emissions trading systems and carbon taxes, are designed and operate. This policy brief analyses the relevant empirical evidence and theoretical research on how carbon pricing instruments function in recessions and booms.
This paper proposes a simple index of economic progress that weighs in the monetary cost induced by climate change mitigation policies as well as the health benefits arising from the reduction in local air pollution. The shadow price of pollution is calculated indirectly through its impact on life expectancy. Taking into account the health benefits of mitigation policies significantly reduces their monetary cost in China and India, as well as in countries with large fossil-based energy-producing sectors (Australia, Canada and the United States).
This handbook describes in detail how trade can affect the environment, for better and for worse, and how environmental concern can work through the trading system to foster or frustrate development, in both rich and poor countries. It is aimed mainly at those with some knowledge about trade, environment or development, but who are not expert on the intersection of the three. It aims to serve as a practical reference tool for policy-makers and practitioners, and be equally useful to the media and civil society.
This paper, produced through the New Climate Economy Cities Research Programme, first examines the importance of the third pillar of the 3C model: coordinated governance. Governance will be particularly crucial in many emerging cities where current levels of capacity are often insufficient for implementing the policy programmes needed to move towards compact urban growth and deliver effective, connected infrastructure. Four elements of coordinated urban governance are essential: (1) multi-level governance with effective coordination of national, regional and city policies; (2) city leadership and financial authority; (3) transparency and accountability; and (4) policy integration at the local level. Municipal governments can also use international and regional networks of cities to transfer knowledge and innovation more effectively. Furthermore, this paper reviews the most promising policy tools for delivering the 3C model. These include: (1) planning policy instruments; (2) pricing instruments; and (3) finance mechanisms.
This paper conducts a comparative analysis of the results of five recently completed studies that examined the economic case for investment in low-carbon development in five cities: Leeds (UK), Kolkata (India), Lima (Peru), Johor Bahru (Malaysia) and Palembang (Indonesia). The results demonstrate that there is a compelling economic case for cities in both developed and developing country contexts to invest, at scale, in cost-effective forms of low-carbon development.