Climate Change and the Economics of Targeted Mitigation in Sectors with Long-Lived Capital Stock
Mitigation investments in long-lived capital stock (LLKS) differ from other types of mitigation investments in that, once established, LLKS can lock-in a stream of emissions for extended periods of time. Moreover, historical examples from industria...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| 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=000158349_20090923161232 http://hdl.handle.net/10986/4254 |
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okr-10986-4254 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ABATEMENT AGGLOMERATION ECONOMIES AIR AIR TRAFFIC ALTERNATIVE ENERGY ALTERNATIVE TRANSPORT ALTERNATIVE TRANSPORTATION ARTERIAL ROADS ARTERY ATMOSPHERIC CONCENTRATION BASELINE EMISSIONS BIOMASS BOILERS BRIDGE CALCULATION CAPITAL INVESTMENT CAPITAL STOCKS CAPITAL TURNOVER CARBON CARBON CAP CARBON CAPTURE CARBON CARS CARBON CONSTRAINTS CARBON DIOXIDE CARBON EMISSION CARBON EMISSIONS CARBON ENERGY CARBON EQUIVALENT CARBON FINANCE CARBON INTENSITY CARBON MARKET CARBON MARKETS CARBON TAX CARS CERTIFIED EMISSION REDUCTIONS CH4 CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION CLIMATE CHANGE NEGOTIATIONS CLIMATE POLICIES CLIMATE-CHANGE CO2 COAL CONCENTRATION TARGET CONGESTION CONSUMPTION OF ENERGY COST OF CARBON COST-BENEFIT COST-BENEFIT ANALYSIS COSTS OF ABATEMENT CROSSING DAMAGES DEMAND FOR ELECTRICITY DEMAND FOR TRANSPORTATION DEVELOPMENT ECONOMICS DOMESTIC CARBON DRIVING ECONOMIC GROWTH ECONOMIC PERSPECTIVE ECONOMIES OF SCALE ELECTRICITY ELECTRICITY GENERATION ELECTRICITY PRODUCTION EMISSION EMISSION ALLOWANCES EMISSION PATH EMISSION PATHS EMISSION REDUCTION EMISSION REDUCTIONS EMISSION TARGETS EMISSIONS EMISSIONS ALLOWANCES EMISSIONS FROM ELECTRICITY GENERATION EMISSIONS FROM FOSSIL-FUEL COMBUSTION EMISSIONS FROM LAND-USE CHANGE EMISSIONS GOALS EMISSIONS GROWTH EMISSIONS INTENSITY EMISSIONS PATH EMISSIONS PATHS EMISSIONS PER PASSENGER EMISSIONS REDUCTION EMISSIONS SAVINGS EMISSIONS STANDARDS EMISSIONS TARGETS ENERGY CONSUMPTION ENERGY DEMAND ENERGY EFFICIENCY ENERGY PRODUCTION ENERGY SECURITY ENERGY SOURCES EXPRESSWAYS EXTERNALITIES FINANCIAL ANALYSIS FINANCIAL BARRIERS FLOOR AREA FLOOR SPACE FOSSIL FUEL FOSSIL-FUEL EMISSIONS FREIGHT FREIGHT TRANSPORT FUEL FUEL EFFICIENCY FUEL OIL FUEL SUPPLY FUEL SWITCHING FUELS GAS GASOLINE GASOLINE USE GENERATION CAPACITY GHG GLOBAL CLIMATE CHANGE GREENHOUSE GREENHOUSE GASES GREENHOUSE GASES EMISSIONS HARMFUL EMISSIONS HEATING SYSTEMS HEAVY TRUCK TRAFFIC HFC23 HIGH SPEED TRAIN HIGH SPEEDS HIGH-SPEED LINES HIGH-SPEED RAIL HIGH-SPEED RAIL NETWORK HIGH-SPEED TRAIN HIGHWAY HIGHWAY ADMINISTRATION HIGHWAY NETWORK HIGHWAY PROGRAM HIGHWAY SYSTEMS HIGHWAYS HYDROGEN INFRASTRUCTURE INVESTMENT INFRASTRUCTURE PROJECTS INTERSTATE HIGHWAY SYSTEM INTERSTATE HIGHWAYS INVESTMENT DECISIONS IPCC LAND USE LOCAL AIR POLLUTION LONG-TERM EMISSIONS PATHS LOW CARBON TECHNOLOGIES LOW-CARBON METHANE MILEAGE MODAL SHARE MODAL SHARES MODAL SHIFT N2O NATIONAL HIGHWAY SYSTEM NATIONAL RAILWAY NATURAL GAS NITROUS OXIDE NUCLEAR ENERGY NUCLEAR POWER NUCLEAR POWER PLANTS POLLUTION POLLUTION EXTERNALITIES POPULATION GROWTH POWER GENERATION POWER PLANTS POWER SECTOR PRESENT VALUE PRICE INCENTIVES PRICE SIGNAL PUBLIC TRANSIT PUBLIC TRANSIT SYSTEMS RAIL RAIL INFRASTRUCTURE RAIL NETWORKS RAIL RIDERSHIP RAIL TRACK RAIL TRANSPORTATION RAILWAY NETWORK RAILWAYS RELATIVE PRICE RENEWABLE ENERGY RENEWABLE ENERGY SOURCES RESIDENTIAL USE RETROFITTING RIDER RIDERSHIP RING ROAD ROAD ROAD INFRASTRUCTURE ROAD NETWORK ROAD TRAFFIC ROADS RURAL ROADS SCENARIOS SUPPLY SIDE TAX TOTAL ELECTRICITY GENERATION TOTAL EMISSIONS TRADABLE EMISSIONS TRAINS TRANSIT TRANSPORT TRANSPORT DEMAND TRANSPORT INFRASTRUCTURE TRANSPORT INVESTMENT TRANSPORT SECTOR TRANSPORTATION TRANSPORTATION COSTS TRANSPORTATION DEMAND TRANSPORTATION INFRASTRUCTURE TRANSPORTATION NETWORK TRANSPORTATION NETWORKS TRANSPORTATION PROBLEMS TRANSPORTATION PROJECTS TRANSPORTATION STATISTICS TRAVEL DEMAND TRAVEL DISTANCES TRAVEL TIME TRIPS TRUCKS TRUE TUNNELS URBAN HIGHWAY URBAN TRANSPORTATION VEHICLE VEHICLE ENGINES VEHICLE FLEET VEHICLE MILES VEHICLES WIND WIND ENERGY |
| spellingShingle |
ABATEMENT AGGLOMERATION ECONOMIES AIR AIR TRAFFIC ALTERNATIVE ENERGY ALTERNATIVE TRANSPORT ALTERNATIVE TRANSPORTATION ARTERIAL ROADS ARTERY ATMOSPHERIC CONCENTRATION BASELINE EMISSIONS BIOMASS BOILERS BRIDGE CALCULATION CAPITAL INVESTMENT CAPITAL STOCKS CAPITAL TURNOVER CARBON CARBON CAP CARBON CAPTURE CARBON CARS CARBON CONSTRAINTS CARBON DIOXIDE CARBON EMISSION CARBON EMISSIONS CARBON ENERGY CARBON EQUIVALENT CARBON FINANCE CARBON INTENSITY CARBON MARKET CARBON MARKETS CARBON TAX CARS CERTIFIED EMISSION REDUCTIONS CH4 CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION CLIMATE CHANGE NEGOTIATIONS CLIMATE POLICIES CLIMATE-CHANGE CO2 COAL CONCENTRATION TARGET CONGESTION CONSUMPTION OF ENERGY COST OF CARBON COST-BENEFIT COST-BENEFIT ANALYSIS COSTS OF ABATEMENT CROSSING DAMAGES DEMAND FOR ELECTRICITY DEMAND FOR TRANSPORTATION DEVELOPMENT ECONOMICS DOMESTIC CARBON DRIVING ECONOMIC GROWTH ECONOMIC PERSPECTIVE ECONOMIES OF SCALE ELECTRICITY ELECTRICITY GENERATION ELECTRICITY PRODUCTION EMISSION EMISSION ALLOWANCES EMISSION PATH EMISSION PATHS EMISSION REDUCTION EMISSION REDUCTIONS EMISSION TARGETS EMISSIONS EMISSIONS ALLOWANCES EMISSIONS FROM ELECTRICITY GENERATION EMISSIONS FROM FOSSIL-FUEL COMBUSTION EMISSIONS FROM LAND-USE CHANGE EMISSIONS GOALS EMISSIONS GROWTH EMISSIONS INTENSITY EMISSIONS PATH EMISSIONS PATHS EMISSIONS PER PASSENGER EMISSIONS REDUCTION EMISSIONS SAVINGS EMISSIONS STANDARDS EMISSIONS TARGETS ENERGY CONSUMPTION ENERGY DEMAND ENERGY EFFICIENCY ENERGY PRODUCTION ENERGY SECURITY ENERGY SOURCES EXPRESSWAYS EXTERNALITIES FINANCIAL ANALYSIS FINANCIAL BARRIERS FLOOR AREA FLOOR SPACE FOSSIL FUEL FOSSIL-FUEL EMISSIONS FREIGHT FREIGHT TRANSPORT FUEL FUEL EFFICIENCY FUEL OIL FUEL SUPPLY FUEL SWITCHING FUELS GAS GASOLINE GASOLINE USE GENERATION CAPACITY GHG GLOBAL CLIMATE CHANGE GREENHOUSE GREENHOUSE GASES GREENHOUSE GASES EMISSIONS HARMFUL EMISSIONS HEATING SYSTEMS HEAVY TRUCK TRAFFIC HFC23 HIGH SPEED TRAIN HIGH SPEEDS HIGH-SPEED LINES HIGH-SPEED RAIL HIGH-SPEED RAIL NETWORK HIGH-SPEED TRAIN HIGHWAY HIGHWAY ADMINISTRATION HIGHWAY NETWORK HIGHWAY PROGRAM HIGHWAY SYSTEMS HIGHWAYS HYDROGEN INFRASTRUCTURE INVESTMENT INFRASTRUCTURE PROJECTS INTERSTATE HIGHWAY SYSTEM INTERSTATE HIGHWAYS INVESTMENT DECISIONS IPCC LAND USE LOCAL AIR POLLUTION LONG-TERM EMISSIONS PATHS LOW CARBON TECHNOLOGIES LOW-CARBON METHANE MILEAGE MODAL SHARE MODAL SHARES MODAL SHIFT N2O NATIONAL HIGHWAY SYSTEM NATIONAL RAILWAY NATURAL GAS NITROUS OXIDE NUCLEAR ENERGY NUCLEAR POWER NUCLEAR POWER PLANTS POLLUTION POLLUTION EXTERNALITIES POPULATION GROWTH POWER GENERATION POWER PLANTS POWER SECTOR PRESENT VALUE PRICE INCENTIVES PRICE SIGNAL PUBLIC TRANSIT PUBLIC TRANSIT SYSTEMS RAIL RAIL INFRASTRUCTURE RAIL NETWORKS RAIL RIDERSHIP RAIL TRACK RAIL TRANSPORTATION RAILWAY NETWORK RAILWAYS RELATIVE PRICE RENEWABLE ENERGY RENEWABLE ENERGY SOURCES RESIDENTIAL USE RETROFITTING RIDER RIDERSHIP RING ROAD ROAD ROAD INFRASTRUCTURE ROAD NETWORK ROAD TRAFFIC ROADS RURAL ROADS SCENARIOS SUPPLY SIDE TAX TOTAL ELECTRICITY GENERATION TOTAL EMISSIONS TRADABLE EMISSIONS TRAINS TRANSIT TRANSPORT TRANSPORT DEMAND TRANSPORT INFRASTRUCTURE TRANSPORT INVESTMENT TRANSPORT SECTOR TRANSPORTATION TRANSPORTATION COSTS TRANSPORTATION DEMAND TRANSPORTATION INFRASTRUCTURE TRANSPORTATION NETWORK TRANSPORTATION NETWORKS TRANSPORTATION PROBLEMS TRANSPORTATION PROJECTS TRANSPORTATION STATISTICS TRAVEL DEMAND TRAVEL DISTANCES TRAVEL TIME TRIPS TRUCKS TRUE TUNNELS URBAN HIGHWAY URBAN TRANSPORTATION VEHICLE VEHICLE ENGINES VEHICLE FLEET VEHICLE MILES VEHICLES WIND WIND ENERGY Shalizi, Zmarak Lecocq, Franck Climate Change and the Economics of Targeted Mitigation in Sectors with Long-Lived Capital Stock |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5063 |
| description |
Mitigation investments in long-lived
capital stock (LLKS) differ from other types of mitigation
investments in that, once established, LLKS can lock-in a
stream of emissions for extended periods of time. Moreover,
historical examples from industrial countries suggest that
investments in LLKS projects or networks tend to be lumpy,
and tend to generate significant indirect and induced
emissions besides direct emissions. Looking forward,
urbanization and rapid economic growth suggest that similar
decisions about LLKS are being or will soon be made in many
developing countries. In their current form, carbon markets
do not provide correct incentives for mitigation investments
in LLKS because the constraint on carbon extends only to
2012, and does not extend to many developing countries.
Targeted mitigation programs in regions and sectors in which
LLKS is being built at rapid rate are thus necessary to
avoid getting locked into highly carbon-intensive LLKS. Even
if the carbon markets were extended (geographically,
sectorally, and over time), public intervention would still
be required, for three main reasons. First, to ensure that
indirect and induced emissions associated with LLKS are
taken into account in investor s financial cost-benefit
analysis. Second, to facilitate project or network financing
to bridge the gap between carbon revenues that accrue over
time as the project/network unfolds and the capital needed
upfront to finance lumpy investments. Third, to internalize
other non-carbon externalities (e.g., local pollution)
and/or to lift barriers (e.g., lack of capacity to handle
new technologies) that penalize the low-carbon alternatives
relative to the high-carbon ones. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Shalizi, Zmarak Lecocq, Franck |
| author_facet |
Shalizi, Zmarak Lecocq, Franck |
| author_sort |
Shalizi, Zmarak |
| title |
Climate Change and the Economics of Targeted Mitigation in Sectors
with Long-Lived Capital Stock |
| title_short |
Climate Change and the Economics of Targeted Mitigation in Sectors
with Long-Lived Capital Stock |
| title_full |
Climate Change and the Economics of Targeted Mitigation in Sectors
with Long-Lived Capital Stock |
| title_fullStr |
Climate Change and the Economics of Targeted Mitigation in Sectors
with Long-Lived Capital Stock |
| title_full_unstemmed |
Climate Change and the Economics of Targeted Mitigation in Sectors
with Long-Lived Capital Stock |
| title_sort |
climate change and the economics of targeted mitigation in sectors
with long-lived capital stock |
| 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=000158349_20090923161232 http://hdl.handle.net/10986/4254 |
| _version_ |
1764390612474265600 |
| spelling |
okr-10986-42542021-04-23T14:02:16Z Climate Change and the Economics of Targeted Mitigation in Sectors with Long-Lived Capital Stock Shalizi, Zmarak Lecocq, Franck ABATEMENT AGGLOMERATION ECONOMIES AIR AIR TRAFFIC ALTERNATIVE ENERGY ALTERNATIVE TRANSPORT ALTERNATIVE TRANSPORTATION ARTERIAL ROADS ARTERY ATMOSPHERIC CONCENTRATION BASELINE EMISSIONS BIOMASS BOILERS BRIDGE CALCULATION CAPITAL INVESTMENT CAPITAL STOCKS CAPITAL TURNOVER CARBON CARBON CAP CARBON CAPTURE CARBON CARS CARBON CONSTRAINTS CARBON DIOXIDE CARBON EMISSION CARBON EMISSIONS CARBON ENERGY CARBON EQUIVALENT CARBON FINANCE CARBON INTENSITY CARBON MARKET CARBON MARKETS CARBON TAX CARS CERTIFIED EMISSION REDUCTIONS CH4 CLIMATE CLIMATE CHANGE CLIMATE CHANGE MITIGATION CLIMATE CHANGE NEGOTIATIONS CLIMATE POLICIES CLIMATE-CHANGE CO2 COAL CONCENTRATION TARGET CONGESTION CONSUMPTION OF ENERGY COST OF CARBON COST-BENEFIT COST-BENEFIT ANALYSIS COSTS OF ABATEMENT CROSSING DAMAGES DEMAND FOR ELECTRICITY DEMAND FOR TRANSPORTATION DEVELOPMENT ECONOMICS DOMESTIC CARBON DRIVING ECONOMIC GROWTH ECONOMIC PERSPECTIVE ECONOMIES OF SCALE ELECTRICITY ELECTRICITY GENERATION ELECTRICITY PRODUCTION EMISSION EMISSION ALLOWANCES EMISSION PATH EMISSION PATHS EMISSION REDUCTION EMISSION REDUCTIONS EMISSION TARGETS EMISSIONS EMISSIONS ALLOWANCES EMISSIONS FROM ELECTRICITY GENERATION EMISSIONS FROM FOSSIL-FUEL COMBUSTION EMISSIONS FROM LAND-USE CHANGE EMISSIONS GOALS EMISSIONS GROWTH EMISSIONS INTENSITY EMISSIONS PATH EMISSIONS PATHS EMISSIONS PER PASSENGER EMISSIONS REDUCTION EMISSIONS SAVINGS EMISSIONS STANDARDS EMISSIONS TARGETS ENERGY CONSUMPTION ENERGY DEMAND ENERGY EFFICIENCY ENERGY PRODUCTION ENERGY SECURITY ENERGY SOURCES EXPRESSWAYS EXTERNALITIES FINANCIAL ANALYSIS FINANCIAL BARRIERS FLOOR AREA FLOOR SPACE FOSSIL FUEL FOSSIL-FUEL EMISSIONS FREIGHT FREIGHT TRANSPORT FUEL FUEL EFFICIENCY FUEL OIL FUEL SUPPLY FUEL SWITCHING FUELS GAS GASOLINE GASOLINE USE GENERATION CAPACITY GHG GLOBAL CLIMATE CHANGE GREENHOUSE GREENHOUSE GASES GREENHOUSE GASES EMISSIONS HARMFUL EMISSIONS HEATING SYSTEMS HEAVY TRUCK TRAFFIC HFC23 HIGH SPEED TRAIN HIGH SPEEDS HIGH-SPEED LINES HIGH-SPEED RAIL HIGH-SPEED RAIL NETWORK HIGH-SPEED TRAIN HIGHWAY HIGHWAY ADMINISTRATION HIGHWAY NETWORK HIGHWAY PROGRAM HIGHWAY SYSTEMS HIGHWAYS HYDROGEN INFRASTRUCTURE INVESTMENT INFRASTRUCTURE PROJECTS INTERSTATE HIGHWAY SYSTEM INTERSTATE HIGHWAYS INVESTMENT DECISIONS IPCC LAND USE LOCAL AIR POLLUTION LONG-TERM EMISSIONS PATHS LOW CARBON TECHNOLOGIES LOW-CARBON METHANE MILEAGE MODAL SHARE MODAL SHARES MODAL SHIFT N2O NATIONAL HIGHWAY SYSTEM NATIONAL RAILWAY NATURAL GAS NITROUS OXIDE NUCLEAR ENERGY NUCLEAR POWER NUCLEAR POWER PLANTS POLLUTION POLLUTION EXTERNALITIES POPULATION GROWTH POWER GENERATION POWER PLANTS POWER SECTOR PRESENT VALUE PRICE INCENTIVES PRICE SIGNAL PUBLIC TRANSIT PUBLIC TRANSIT SYSTEMS RAIL RAIL INFRASTRUCTURE RAIL NETWORKS RAIL RIDERSHIP RAIL TRACK RAIL TRANSPORTATION RAILWAY NETWORK RAILWAYS RELATIVE PRICE RENEWABLE ENERGY RENEWABLE ENERGY SOURCES RESIDENTIAL USE RETROFITTING RIDER RIDERSHIP RING ROAD ROAD ROAD INFRASTRUCTURE ROAD NETWORK ROAD TRAFFIC ROADS RURAL ROADS SCENARIOS SUPPLY SIDE TAX TOTAL ELECTRICITY GENERATION TOTAL EMISSIONS TRADABLE EMISSIONS TRAINS TRANSIT TRANSPORT TRANSPORT DEMAND TRANSPORT INFRASTRUCTURE TRANSPORT INVESTMENT TRANSPORT SECTOR TRANSPORTATION TRANSPORTATION COSTS TRANSPORTATION DEMAND TRANSPORTATION INFRASTRUCTURE TRANSPORTATION NETWORK TRANSPORTATION NETWORKS TRANSPORTATION PROBLEMS TRANSPORTATION PROJECTS TRANSPORTATION STATISTICS TRAVEL DEMAND TRAVEL DISTANCES TRAVEL TIME TRIPS TRUCKS TRUE TUNNELS URBAN HIGHWAY URBAN TRANSPORTATION VEHICLE VEHICLE ENGINES VEHICLE FLEET VEHICLE MILES VEHICLES WIND WIND ENERGY Mitigation investments in long-lived capital stock (LLKS) differ from other types of mitigation investments in that, once established, LLKS can lock-in a stream of emissions for extended periods of time. Moreover, historical examples from industrial countries suggest that investments in LLKS projects or networks tend to be lumpy, and tend to generate significant indirect and induced emissions besides direct emissions. Looking forward, urbanization and rapid economic growth suggest that similar decisions about LLKS are being or will soon be made in many developing countries. In their current form, carbon markets do not provide correct incentives for mitigation investments in LLKS because the constraint on carbon extends only to 2012, and does not extend to many developing countries. Targeted mitigation programs in regions and sectors in which LLKS is being built at rapid rate are thus necessary to avoid getting locked into highly carbon-intensive LLKS. Even if the carbon markets were extended (geographically, sectorally, and over time), public intervention would still be required, for three main reasons. First, to ensure that indirect and induced emissions associated with LLKS are taken into account in investor s financial cost-benefit analysis. Second, to facilitate project or network financing to bridge the gap between carbon revenues that accrue over time as the project/network unfolds and the capital needed upfront to finance lumpy investments. Third, to internalize other non-carbon externalities (e.g., local pollution) and/or to lift barriers (e.g., lack of capacity to handle new technologies) that penalize the low-carbon alternatives relative to the high-carbon ones. 2012-03-19T19:12:41Z 2012-03-19T19:12:41Z 2009-09-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090923161232 http://hdl.handle.net/10986/4254 English Policy Research working paper ; no. WPS 5063 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |