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The Political Economy of Climate Change Policies: Political Economy Aspects of Climate Change Mitigation Efforts

Author

Listed:
  • Nicole A. MATHYS

    (Office fédéral suisse de l'énergie (OFEN))

  • Jaime DE MELO

    (Ferdi)

Abstract

Regardless of the policies used to mitigate climate change, a positive and relatively high price of carbon will have to be established, with slow convergence across regions, leading to huge rents up to capture, way beyond those that have been fought over in the GATT-based international trading system. The paper explores the political-economy, feasibility and desirability implications of the two main alternatives, a carbon tax and a cap-and-trade (CAT) system. Having the same concerns, CAT systems in the EU and the US have accounted for different outcomes in each case. Likely leakages under foreseeable carbon prices are estimated to be small and not of an order of magnitude justifying the special allowances sought across a wide spectrum of industries.

Suggested Citation

  • Nicole A. MATHYS & Jaime DE MELO, 2011. "The Political Economy of Climate Change Policies: Political Economy Aspects of Climate Change Mitigation Efforts," Working Papers P24, FERDI.
    • Handle: RePEc:fdi:wpaper:562
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    2. Andrea Baranzini & Stefano Carattini, 2017. "Effectiveness, earmarking and labeling: testing the acceptability of carbon taxes with survey data," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(1), pages 197-227, January.
    3. Dingzhong Feng & Lei Ma & Yangke Ding & Guanghua Wu & Ye Zhang, 2019. "Decisions of the Dual-Channel Supply Chain under Double Policy Considering Remanufacturing," IJERPH, MDPI, vol. 16(3), pages 1-20, February.
    4. Wei Jiang & Jia Liu & Xiang Liu, 2016. "Impact of Carbon Quota Allocation Mechanism on Emissions Trading: An Agent-Based Simulation," Sustainability, MDPI, vol. 8(8), pages 1-13, August.

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    More about this item

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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