IFS Week 5 - Policy Instruments 1 by Jonas Torrens https://padlet.com/j_torrens/7ij1uetsordz Group 1 - Chapter 14 & 15​ en-us 2018-03-02 11:47:59 UTC 2018-03-09 16:12:15 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/File.png Basic j_torrens https://padlet.com/j_torrens/7ij1uetsordz/wish/237401070 You can open this window in fullscreen by clicking on the link 'Open in Padlet' below. Please add your notes here, and comments on the notes of your colleagues, to prepare the content which will inform your presentation. You may add other information from the lecture, attach documents, and add links to examples of the instruments you are describing. ]]> 2018-03-02 14:22:30 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/237401070 chapter 14 https://padlet.com/j_torrens/7ij1uetsordz/wish/240101348 This chapter discusses the implementation of higher tax levies and tradable quotas on the emissions of greenhouse gases by the creation of independent bodies that will monitor those that are large emitters and tax them accordingly.
 
The chapter also discusses the balance of how carbon and other greenhouse gases are taxed, and how to create policies that work in favour of stabilising and eventually reducing greenhouse gases]]> 2018-03-09 12:05:35 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240101348 Economic instruments heburgess2 https://padlet.com/j_torrens/7ij1uetsordz/wish/240112859 Economic barriers

Different considerations over short term vs long term.

Short term - any reduction in C02 over the short term has a minimal effect on the total stock of carbon. Therefore benefits of a reduction of carbon over the short term change little over the level of pollution. Whereas costs of trying to reduce too quickly should be high. So in short term trying to impose a fixed quota could be costly. Instead use pricing mechanisms like taxes or tradable quotas.

Long term
- marginal cost of CO2 will rise over the long term and can rise very quickly as reaches tipping point
- whilst costs of abatement should be more even over long term once new capital goods and tech to reduce carbon have already been establishes.
- So over long term a fixed quantity quota may be beneficial.

Recommend - adjusting price mechanisms regularly to increase the price to reflect the increasing marginal social cost of C02 over the long term. Set a long term limit. ]]> 2018-03-09 12:47:42 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240112859 Common price signal across countries may be difficult. Imperfect market for fossil fuels - producers can anticipate price increased taxes and reduce demand, and reduce prices now to sell off now before demand decreases. May accelerate use of fossile fuels. Tax should take into account these complexities. heburgess2 https://padlet.com/j_torrens/7ij1uetsordz/wish/240120780 Tradable quota may create rents and reduce efficiency as resources are wasted in rent-seeking lobbying etc and blocks to entry when incumbents have rents. 

Equity - resources may not go to developing countries.]]> 2018-03-09 13:10:09 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240120780 Taxes generate revenue, quotas depends on whether a sale or auction is involved. heburgess2 https://padlet.com/j_torrens/7ij1uetsordz/wish/240122234
Could use revenue to encourage reduced emissions etc. 

Need to coordinate across countries. 
Could use to assist developing countries. 
Need robust institutions.]]> 2018-03-09 13:14:13 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240122234 Neoclassical approaches and efficiency heburgess2 https://padlet.com/j_torrens/7ij1uetsordz/wish/240124610 Taxes and tradable quotas are both judged to perform well against efficiency criteria. Help to establish a consistent price signal for CO2 across regions and sectors.]]> 2018-03-09 13:21:01 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240124610 Limitation of Carbon trading schemes https://padlet.com/j_torrens/7ij1uetsordz/wish/240126717 - Imperfect information
- Difficulties of ensuring scarcity in carbon trading market
- The need of a complete systems ]]> 2018-03-09 13:25:31 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240126717 Policies need to be credible, flexible and predictable. heburgess2 https://padlet.com/j_torrens/7ij1uetsordz/wish/240126936 - businesses need to be able to have confidence and plan.eg busineses would like more certainty on EU trading scheme
- need to know when might change
needs support of interest groups
- businesses make decisions long term and need to be able to factor in higher carbon prices now in their long term investments otherwise might get locked into high carbon tech

Specific national circumstances are important and different policies may be credible in different countries

Need common incentives across countries and sectors. But polcies need to be customised to sectors.]]> 2018-03-09 13:25:59 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240126936 Need to complement carbon pricing with other measures such as promotion of technology development heburgess2 https://padlet.com/j_torrens/7ij1uetsordz/wish/240128433 2018-03-09 13:29:04 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240128433 Trading can allow emissions reductions wherever it is cheapest. heburgess2 https://padlet.com/j_torrens/7ij1uetsordz/wish/240130224 has been implemented in EU]]> 2018-03-09 13:33:12 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240130224 Price caps and floors in emission trading schemes (?) https://padlet.com/j_torrens/7ij1uetsordz/wish/240130550 It is a economic concept in which prevent the market price spike and maintain the price in the minimum level. (But not sure if it is fit in this column.)]]> 2018-03-09 13:33:52 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240130550 I've mainly looked at chapter 14, if anyone wants to look at chapter 15 in more detail, or more notes on chapter 14 would be useful. Heather heburgess2 https://padlet.com/j_torrens/7ij1uetsordz/wish/240132694 2018-03-09 13:38:15 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240132694 Difficulties in the implementation of the carbon tax https://padlet.com/j_torrens/7ij1uetsordz/wish/240135747 - Numerous exemptions
- Did not reflect the actual emission level of emitter. 
- Difficult to co-ordinate the tax policy internationally e.g. Norway, Sweden, Finland and Denmark]]> 2018-03-09 13:44:16 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240135747 Price caps and floors in emission trading schemes (?)It is a economic concept in which prevent the market price spike and maintain the price in the minimum level. (But not sure if it is fit in this column.) https://padlet.com/j_torrens/7ij1uetsordz/wish/240212742 2018-03-09 15:45:59 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240212742 Efficiency heburgess2 https://padlet.com/j_torrens/7ij1uetsordz/wish/240218722 Common price signal between countries ]]> 2018-03-09 15:56:06 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240218722 Publix finance https://padlet.com/j_torrens/7ij1uetsordz/wish/240220021 Raise the public revenue]]> 2018-03-09 15:58:30 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240220021 Technology https://padlet.com/j_torrens/7ij1uetsordz/wish/240220505 Pushing the growth of technology]]> 2018-03-09 15:59:21 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240220505 heburgess2 https://padlet.com/j_torrens/7ij1uetsordz/wish/240222880 2018-03-09 16:03:32 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240222880 Emission reduction, for sure https://padlet.com/j_torrens/7ij1uetsordz/wish/240228323 2018-03-09 16:11:50 UTC https://padlet.com/j_torrens/7ij1uetsordz/wish/240228323