Climate Change and Fiscal Policy : A Report for APEC
Asia-Pacific Economic Cooperation (APEC) economies display large variation in terms of income per capita. The richest APEC economies have an income per capita about twenty times higher than the poorest ones. So far most work on fiscal policy and cl...
| Main Author: | |
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| Format: | Other Environmental Study |
| Language: | English |
| Published: |
World Bank
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333038_20110201000150 http://hdl.handle.net/10986/2734 |
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okr-10986-2734 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ABATEMENT ABSOLUTE EMISSIONS ACID ACID RAIN ADAPTATION TO CLIMATE CHANGE AIR AIR POLLUTION AIR POLLUTION PROBLEMS ALLOCATION ALUMINUM ANNUAL GLOBAL EMISSIONS ANTHROPOGENIC EMISSIONS APPROACH AVAILABILITY BALANCE BIOMASS BUSINESS AS USUAL SCENARIO CALCULATION CAPITAL COSTS CARBON CARBON DIOXIDE CARBON DIOXIDE EMISSIONS CARBON INTENSITY CARBON PRICE CARBON PRICES CARBON TAX CEMENT CLEAN ENERGY CLEANER ENERGY CLIMATE CLIMATE CHANGE CLIMATE CHANGE ECONOMICS CLIMATE CHANGE IMPACTS CLIMATE CHANGE MITIGATION CLIMATE ECONOMICS CLIMATE LEGISLATION CLIMATE POLICY CLIMATE-CHANGE CLIMATE-CHANGE MITIGATION CLIMATIC CHANGES CO CO2 COAL COAL CONSUMPTION COAL PRICES COAL PRODUCTION COASTAL AREAS CONSUMER DEMAND CONSUMPTION OF COAL CONVERGENCE COST-BENEFIT COST-BENEFIT ANALYSIS COST-BENEFIT FRAMEWORK COST-EFFECTIVENESS ANALYSIS CUMULATIVE EMISSIONS DAMAGES DEVELOPMENT ECONOMICS DISCOUNT RATE DISTRIBUTION OF COSTS DIVERGENCE DOMESTIC OIL DOMESTIC OIL PRODUCTION ECONOMIC ANALYSIS ECONOMIC GROWTH ECONOMIC IMPACT ECONOMIC INDICATORS ECONOMIC PERSPECTIVE ECONOMIC POLICIES ELECTRICITY ELECTRICITY DISPATCH ELECTRICITY GENERATION ELECTRICITY PRICES ELECTRICITY SECTOR EMISSION EMISSION CONTROL EMISSION REDUCTIONS EMISSIONS EMISSIONS CONTROL EMISSIONS FROM COAL EMISSIONS FROM DEFORESTATION EMISSIONS GROWTH EMISSIONS INTENSITY EMISSIONS REDUCTION EMISSIONS REDUCTIONS EMISSIONS TARGETS ENERGY BILLS ENERGY CONSUMPTION ENERGY COSTS ENERGY EFFICIENCY ENERGY INTENSITY ENERGY INTENSIVE ENERGY MARKETS ENERGY POLICIES ENERGY PRICE ENERGY PRICES ENERGY PRICING ENERGY PRODUCTION ENERGY SECURITY ENERGY SHORTAGES ENERGY SOURCES ENERGY SUBSIDIES ENERGY USE ENVIRONMENTAL DECISIONS ENVIRONMENTAL ECONOMICS ENVIRONMENTAL GOALS ENVIRONMENTAL OUTCOMES ENVIRONMENTAL PROBLEMS ENVIRONMENTAL PROTECTION FEASIBILITY FINANCIAL ASSISTANCE FINANCIAL CONSTRAINTS FINANCIAL CRISIS FINANCIAL INSTRUMENTS FINANCIAL SECTOR FISCAL POLICIES FLOODS FOREST FOREST COVERAGE FOREST DEGRADATION FOREST STOCK FORESTRY FOSSIL FOSSIL FUEL FOSSIL FUEL EMISSIONS FOSSIL FUEL USE FOSSIL FUELS FRAMEWORK CONVENTION ON CLIMATE CHANGE FUEL COSTS GAS GASOLINE GASOLINE PRICES GASOLINE TAX GHG GLOBAL EMISSIONS GREEN PAPER GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS GREENHOUSE GASES GROWTH IN DEMAND HEAVY INDUSTRY HIGH ENERGY INTENSITY HIGHER ENERGY PRICES HYDROGEN IMPORTS INCOME INCOME HOUSEHOLDS INSURANCE INVESTMENT DECISIONS MARGINAL UTILITY MARKET DISTORTIONS MARKET FAILURES MITIGATION TECHNOLOGIES NATIONAL EMISSIONS OIL OIL CRISIS OIL EQUIVALENT OIL IMPORTS OIL PRODUCTION OIL USE PER CAPITA INCOME POLICY MAKERS POWER SECTOR POWER SHORTAGES PRECAUTIONARY PRINCIPLE PRESENT VALUE PRICE OF COAL PRIMARY ENERGY PRIMARY ENERGY CONSUMPTION PROBABILITY DISTRIBUTION PROBABILITY DISTRIBUTIONS R&D FUNDING RAINFALL RATIO OF ENERGY CONSUMPTION REDUCTION IN EMISSIONS RELATIVE PRICE RENEWABLE ENERGY RENEWABLE ENERGY PROJECTS RENEWABLE ENERGY TECHNOLOGY RESPONSE TO CLIMATE CHANGE SOLAR POWER SUBSTITUTION SULPHUR SUSTAINABLE DEVELOPMENT TAX CREDITS TAX RATES TOTAL EMISSIONS TRADITIONAL ENERGY SECTOR TRADITIONAL FUELS TRANSMISSION CONSTRAINTS TRANSPORT SECTOR UNCERTAINTIES UTILITIES VEHICLES WELFARE CONSEQUENCES WIND WIND ENERGY WIND INDUSTRY WIND POWER WORLD ENERGY |
| spellingShingle |
ABATEMENT ABSOLUTE EMISSIONS ACID ACID RAIN ADAPTATION TO CLIMATE CHANGE AIR AIR POLLUTION AIR POLLUTION PROBLEMS ALLOCATION ALUMINUM ANNUAL GLOBAL EMISSIONS ANTHROPOGENIC EMISSIONS APPROACH AVAILABILITY BALANCE BIOMASS BUSINESS AS USUAL SCENARIO CALCULATION CAPITAL COSTS CARBON CARBON DIOXIDE CARBON DIOXIDE EMISSIONS CARBON INTENSITY CARBON PRICE CARBON PRICES CARBON TAX CEMENT CLEAN ENERGY CLEANER ENERGY CLIMATE CLIMATE CHANGE CLIMATE CHANGE ECONOMICS CLIMATE CHANGE IMPACTS CLIMATE CHANGE MITIGATION CLIMATE ECONOMICS CLIMATE LEGISLATION CLIMATE POLICY CLIMATE-CHANGE CLIMATE-CHANGE MITIGATION CLIMATIC CHANGES CO CO2 COAL COAL CONSUMPTION COAL PRICES COAL PRODUCTION COASTAL AREAS CONSUMER DEMAND CONSUMPTION OF COAL CONVERGENCE COST-BENEFIT COST-BENEFIT ANALYSIS COST-BENEFIT FRAMEWORK COST-EFFECTIVENESS ANALYSIS CUMULATIVE EMISSIONS DAMAGES DEVELOPMENT ECONOMICS DISCOUNT RATE DISTRIBUTION OF COSTS DIVERGENCE DOMESTIC OIL DOMESTIC OIL PRODUCTION ECONOMIC ANALYSIS ECONOMIC GROWTH ECONOMIC IMPACT ECONOMIC INDICATORS ECONOMIC PERSPECTIVE ECONOMIC POLICIES ELECTRICITY ELECTRICITY DISPATCH ELECTRICITY GENERATION ELECTRICITY PRICES ELECTRICITY SECTOR EMISSION EMISSION CONTROL EMISSION REDUCTIONS EMISSIONS EMISSIONS CONTROL EMISSIONS FROM COAL EMISSIONS FROM DEFORESTATION EMISSIONS GROWTH EMISSIONS INTENSITY EMISSIONS REDUCTION EMISSIONS REDUCTIONS EMISSIONS TARGETS ENERGY BILLS ENERGY CONSUMPTION ENERGY COSTS ENERGY EFFICIENCY ENERGY INTENSITY ENERGY INTENSIVE ENERGY MARKETS ENERGY POLICIES ENERGY PRICE ENERGY PRICES ENERGY PRICING ENERGY PRODUCTION ENERGY SECURITY ENERGY SHORTAGES ENERGY SOURCES ENERGY SUBSIDIES ENERGY USE ENVIRONMENTAL DECISIONS ENVIRONMENTAL ECONOMICS ENVIRONMENTAL GOALS ENVIRONMENTAL OUTCOMES ENVIRONMENTAL PROBLEMS ENVIRONMENTAL PROTECTION FEASIBILITY FINANCIAL ASSISTANCE FINANCIAL CONSTRAINTS FINANCIAL CRISIS FINANCIAL INSTRUMENTS FINANCIAL SECTOR FISCAL POLICIES FLOODS FOREST FOREST COVERAGE FOREST DEGRADATION FOREST STOCK FORESTRY FOSSIL FOSSIL FUEL FOSSIL FUEL EMISSIONS FOSSIL FUEL USE FOSSIL FUELS FRAMEWORK CONVENTION ON CLIMATE CHANGE FUEL COSTS GAS GASOLINE GASOLINE PRICES GASOLINE TAX GHG GLOBAL EMISSIONS GREEN PAPER GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS GREENHOUSE GASES GROWTH IN DEMAND HEAVY INDUSTRY HIGH ENERGY INTENSITY HIGHER ENERGY PRICES HYDROGEN IMPORTS INCOME INCOME HOUSEHOLDS INSURANCE INVESTMENT DECISIONS MARGINAL UTILITY MARKET DISTORTIONS MARKET FAILURES MITIGATION TECHNOLOGIES NATIONAL EMISSIONS OIL OIL CRISIS OIL EQUIVALENT OIL IMPORTS OIL PRODUCTION OIL USE PER CAPITA INCOME POLICY MAKERS POWER SECTOR POWER SHORTAGES PRECAUTIONARY PRINCIPLE PRESENT VALUE PRICE OF COAL PRIMARY ENERGY PRIMARY ENERGY CONSUMPTION PROBABILITY DISTRIBUTION PROBABILITY DISTRIBUTIONS R&D FUNDING RAINFALL RATIO OF ENERGY CONSUMPTION REDUCTION IN EMISSIONS RELATIVE PRICE RENEWABLE ENERGY RENEWABLE ENERGY PROJECTS RENEWABLE ENERGY TECHNOLOGY RESPONSE TO CLIMATE CHANGE SOLAR POWER SUBSTITUTION SULPHUR SUSTAINABLE DEVELOPMENT TAX CREDITS TAX RATES TOTAL EMISSIONS TRADITIONAL ENERGY SECTOR TRADITIONAL FUELS TRANSMISSION CONSTRAINTS TRANSPORT SECTOR UNCERTAINTIES UTILITIES VEHICLES WELFARE CONSEQUENCES WIND WIND ENERGY WIND INDUSTRY WIND POWER WORLD ENERGY World Bank Climate Change and Fiscal Policy : A Report for APEC |
| geographic_facet |
East Asia and Pacific |
| description |
Asia-Pacific Economic Cooperation (APEC)
economies display large variation in terms of income per
capita. The richest APEC economies have an income per capita
about twenty times higher than the poorest ones. So far most
work on fiscal policy and climate change has been written
with developed economies in mind. This report on the use of
fiscal policies for mitigating and adapting to climate
change effects corrects that bias with a particular focus on
the developing economies of APEC. It also plays close
attention to lessons that could be learnt from the advanced
economies of APEC and elsewhere. On mitigation, the report
notes that achieving the ambitious targets adopted by APEC
economies will depend crucially the choice of fiscal policy
instruments. These choices will depend, in turn, on the
characteristics of developing economies, particularly of
their energy sectors. Specifically, mitigation in
developing countries requires a broad-based response with
four key components. First, carbon pricing will be critical,
but will not be sufficient and in some economies and some
sectors may have little or no impact due to pre-existing
distortions. Second, energy sector reforms that liberalize
markets and establish effective regulators so that policies
can support appropriate carbon prices and cost pass-through
in the energy sector will be key. Third, broader economic
reforms may also be important to off-set current bias
towards capital and energy intensive economic growth.
Fourth, technology-based mitigation policies will also be
needed, but, given the mixed track record in this area, must
be chosen with care. Given the many uncertainties involved,
and the multiple reforms needed, a verifiable quantity
anchor for mitigation policy is recommended for developing
economies, such as the energy-intensity target recently
adopted by China. On the adaptation side, fiscal analysis
has so far largely focused on cost projections, but for
policy makers adaptation instruments and decision-making
tools are as or more important. Adaptation instruments
include the provision of public and club goods (such as
infrastructure), public sector pricing reform (in particular
of water) and financial instruments (microcredit and
insurance) which can be cost-effective alternatives to
subsidies. Key to the right choice of instruments (which
will vary from location to location) will be the correct use
of appropriate decision-making tools. In particular, the
social costs and benefits of alternative strategies need to
be analyzed under conditions of uncertainty, in many ways
the hallmark of climate change. Popular tools such as
multi-criteria analysis, vulnerability indexes, and cost-
effectiveness analysis are inadequate to the task. A
combination of Monte Carlo and 'real options'
analysis within a cost-benefit framework is recommended for
adaptation projects. Examples from a range of economies are
provided to demonstrate the utility of such an approach. |
| format |
Economic & Sector Work :: Other Environmental Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Climate Change and Fiscal Policy : A Report for APEC |
| title_short |
Climate Change and Fiscal Policy : A Report for APEC |
| title_full |
Climate Change and Fiscal Policy : A Report for APEC |
| title_fullStr |
Climate Change and Fiscal Policy : A Report for APEC |
| title_full_unstemmed |
Climate Change and Fiscal Policy : A Report for APEC |
| title_sort |
climate change and fiscal policy : a report for apec |
| publisher |
World Bank |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333038_20110201000150 http://hdl.handle.net/10986/2734 |
| _version_ |
1764385865869557760 |
| spelling |
okr-10986-27342021-04-23T14:02:04Z Climate Change and Fiscal Policy : A Report for APEC World Bank ABATEMENT ABSOLUTE EMISSIONS ACID ACID RAIN ADAPTATION TO CLIMATE CHANGE AIR AIR POLLUTION AIR POLLUTION PROBLEMS ALLOCATION ALUMINUM ANNUAL GLOBAL EMISSIONS ANTHROPOGENIC EMISSIONS APPROACH AVAILABILITY BALANCE BIOMASS BUSINESS AS USUAL SCENARIO CALCULATION CAPITAL COSTS CARBON CARBON DIOXIDE CARBON DIOXIDE EMISSIONS CARBON INTENSITY CARBON PRICE CARBON PRICES CARBON TAX CEMENT CLEAN ENERGY CLEANER ENERGY CLIMATE CLIMATE CHANGE CLIMATE CHANGE ECONOMICS CLIMATE CHANGE IMPACTS CLIMATE CHANGE MITIGATION CLIMATE ECONOMICS CLIMATE LEGISLATION CLIMATE POLICY CLIMATE-CHANGE CLIMATE-CHANGE MITIGATION CLIMATIC CHANGES CO CO2 COAL COAL CONSUMPTION COAL PRICES COAL PRODUCTION COASTAL AREAS CONSUMER DEMAND CONSUMPTION OF COAL CONVERGENCE COST-BENEFIT COST-BENEFIT ANALYSIS COST-BENEFIT FRAMEWORK COST-EFFECTIVENESS ANALYSIS CUMULATIVE EMISSIONS DAMAGES DEVELOPMENT ECONOMICS DISCOUNT RATE DISTRIBUTION OF COSTS DIVERGENCE DOMESTIC OIL DOMESTIC OIL PRODUCTION ECONOMIC ANALYSIS ECONOMIC GROWTH ECONOMIC IMPACT ECONOMIC INDICATORS ECONOMIC PERSPECTIVE ECONOMIC POLICIES ELECTRICITY ELECTRICITY DISPATCH ELECTRICITY GENERATION ELECTRICITY PRICES ELECTRICITY SECTOR EMISSION EMISSION CONTROL EMISSION REDUCTIONS EMISSIONS EMISSIONS CONTROL EMISSIONS FROM COAL EMISSIONS FROM DEFORESTATION EMISSIONS GROWTH EMISSIONS INTENSITY EMISSIONS REDUCTION EMISSIONS REDUCTIONS EMISSIONS TARGETS ENERGY BILLS ENERGY CONSUMPTION ENERGY COSTS ENERGY EFFICIENCY ENERGY INTENSITY ENERGY INTENSIVE ENERGY MARKETS ENERGY POLICIES ENERGY PRICE ENERGY PRICES ENERGY PRICING ENERGY PRODUCTION ENERGY SECURITY ENERGY SHORTAGES ENERGY SOURCES ENERGY SUBSIDIES ENERGY USE ENVIRONMENTAL DECISIONS ENVIRONMENTAL ECONOMICS ENVIRONMENTAL GOALS ENVIRONMENTAL OUTCOMES ENVIRONMENTAL PROBLEMS ENVIRONMENTAL PROTECTION FEASIBILITY FINANCIAL ASSISTANCE FINANCIAL CONSTRAINTS FINANCIAL CRISIS FINANCIAL INSTRUMENTS FINANCIAL SECTOR FISCAL POLICIES FLOODS FOREST FOREST COVERAGE FOREST DEGRADATION FOREST STOCK FORESTRY FOSSIL FOSSIL FUEL FOSSIL FUEL EMISSIONS FOSSIL FUEL USE FOSSIL FUELS FRAMEWORK CONVENTION ON CLIMATE CHANGE FUEL COSTS GAS GASOLINE GASOLINE PRICES GASOLINE TAX GHG GLOBAL EMISSIONS GREEN PAPER GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS GREENHOUSE GASES GROWTH IN DEMAND HEAVY INDUSTRY HIGH ENERGY INTENSITY HIGHER ENERGY PRICES HYDROGEN IMPORTS INCOME INCOME HOUSEHOLDS INSURANCE INVESTMENT DECISIONS MARGINAL UTILITY MARKET DISTORTIONS MARKET FAILURES MITIGATION TECHNOLOGIES NATIONAL EMISSIONS OIL OIL CRISIS OIL EQUIVALENT OIL IMPORTS OIL PRODUCTION OIL USE PER CAPITA INCOME POLICY MAKERS POWER SECTOR POWER SHORTAGES PRECAUTIONARY PRINCIPLE PRESENT VALUE PRICE OF COAL PRIMARY ENERGY PRIMARY ENERGY CONSUMPTION PROBABILITY DISTRIBUTION PROBABILITY DISTRIBUTIONS R&D FUNDING RAINFALL RATIO OF ENERGY CONSUMPTION REDUCTION IN EMISSIONS RELATIVE PRICE RENEWABLE ENERGY RENEWABLE ENERGY PROJECTS RENEWABLE ENERGY TECHNOLOGY RESPONSE TO CLIMATE CHANGE SOLAR POWER SUBSTITUTION SULPHUR SUSTAINABLE DEVELOPMENT TAX CREDITS TAX RATES TOTAL EMISSIONS TRADITIONAL ENERGY SECTOR TRADITIONAL FUELS TRANSMISSION CONSTRAINTS TRANSPORT SECTOR UNCERTAINTIES UTILITIES VEHICLES WELFARE CONSEQUENCES WIND WIND ENERGY WIND INDUSTRY WIND POWER WORLD ENERGY Asia-Pacific Economic Cooperation (APEC) economies display large variation in terms of income per capita. The richest APEC economies have an income per capita about twenty times higher than the poorest ones. So far most work on fiscal policy and climate change has been written with developed economies in mind. This report on the use of fiscal policies for mitigating and adapting to climate change effects corrects that bias with a particular focus on the developing economies of APEC. It also plays close attention to lessons that could be learnt from the advanced economies of APEC and elsewhere. On mitigation, the report notes that achieving the ambitious targets adopted by APEC economies will depend crucially the choice of fiscal policy instruments. These choices will depend, in turn, on the characteristics of developing economies, particularly of their energy sectors. Specifically, mitigation in developing countries requires a broad-based response with four key components. First, carbon pricing will be critical, but will not be sufficient and in some economies and some sectors may have little or no impact due to pre-existing distortions. Second, energy sector reforms that liberalize markets and establish effective regulators so that policies can support appropriate carbon prices and cost pass-through in the energy sector will be key. Third, broader economic reforms may also be important to off-set current bias towards capital and energy intensive economic growth. Fourth, technology-based mitigation policies will also be needed, but, given the mixed track record in this area, must be chosen with care. Given the many uncertainties involved, and the multiple reforms needed, a verifiable quantity anchor for mitigation policy is recommended for developing economies, such as the energy-intensity target recently adopted by China. On the adaptation side, fiscal analysis has so far largely focused on cost projections, but for policy makers adaptation instruments and decision-making tools are as or more important. Adaptation instruments include the provision of public and club goods (such as infrastructure), public sector pricing reform (in particular of water) and financial instruments (microcredit and insurance) which can be cost-effective alternatives to subsidies. Key to the right choice of instruments (which will vary from location to location) will be the correct use of appropriate decision-making tools. In particular, the social costs and benefits of alternative strategies need to be analyzed under conditions of uncertainty, in many ways the hallmark of climate change. Popular tools such as multi-criteria analysis, vulnerability indexes, and cost- effectiveness analysis are inadequate to the task. A combination of Monte Carlo and 'real options' analysis within a cost-benefit framework is recommended for adaptation projects. Examples from a range of economies are provided to demonstrate the utility of such an approach. 2012-03-19T10:12:06Z 2012-03-19T10:12:06Z 2011-01-31 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333038_20110201000150 http://hdl.handle.net/10986/2734 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank Economic & Sector Work :: Other Environmental Study East Asia and Pacific |