Climate change. Methods to internalize externalities

Bachelorarbeit , 2021 , 46 Seiten , Note: 1,5

VWL - Umweltökonomie

The dissertation is motivated to identify possible reasons for insufficient efforts to mitigate climate change. In addition, economic instruments to address the global problem are examined to find the most cost-effective and efficient solution. This thesis also aims to determine and address arising challenges related to the global implementation of climate policies. Based on empirical research, the main barriers to mitigation efforts include intangible results of the measures combined with high costs of affected sectors and potential benefits from free riders.

Anthropocene – this is what many scientists call the new geological era which has already begun. The name is derived from anthropogenic, which describes that something was created by the impact of humans. Precisely, this is what scientists want to portray, as there is ample empirical evidence that the earth is affected by human activities. In fact, previous research has documented that there is a strong rise in the global carbon dioxide concentration since the mid-20th century. In recent years, several publications appeared documenting that many anthropogenic activities are altering climate. Hsiang and Kopp define climate "as the joint probability distribution describing the state of the atmosphere, ocean, and freshwater systems (including ice)". Although this is a simplification, it includes key factors related to the change of climate like modifications in temperature, humidity, precipitation, sea level and extreme weather events like storms.

Table of Contents

List of Figures

List of Tables

List of Abbreviations

1 Introduction

2 Climate Change
2.1 Global warming
2.2 Greenhouse gases
2.3 Atmospheric carbon dioxide
2.4 Current and prospective future impacts and risks

3 Externalities
3.1 Externalities in the context of greenhouse gases
3.2 Market failure
3.3 Internalization of external effects
3.4 Public goods

4 Long-term policy problem
4.1 Free riders
4.2 Time inconsistency
4.3 Domestic politics problem
4.4 Interrelation

5 Economic instruments of environmental policy
5.1 Coase Theorem
5.2 Regulatory instruments
5.3 Market-based instruments
5.3.1 Pigouvian tax
5.3.2 Comparison of a regulatory instrument and the Pigouvian tax
5.3.3 Socially optimal level of pollution and the Pigouvian tax level
5.3.4 Deviation from the optimal tax level and the resulting welfare impact
5.3.5 Case study - Carbon tax in Switzerland
5.3.6 Tradeable property rights
5.3.7 Comparison between a carbon tax and tradable property rights

6 Global perspective
6.1 Addressing the long-term policy problem
6.2 Global coverage of emissions under a single carbon price
6.3 Implications related to partial implementation of carbon pricing
6.4 Global collaboration to increase responsible action

7 Conclusion and Discussion
7.1 Conclusion
7.2 Discussion

Bibliography

• Hochschule: Fachhochschule Dortmund
• Note: 1,5
• Autor: Nina Elbers (Autor:in)
• Erscheinungsjahr: 2021
• Seiten: 46
• Katalognummer: V1040713
• ISBN (eBook): 9783346459480
• ISBN (Buch): 9783346459497
• Sprache: Englisch
• Schlagworte: Climate change, externalities, klimawandel, carbon dioxide, CO2, CC, climate policies, carbon pricing, external effects, greenhousegas, GHG, Treibhausgase, Klimapolitik, Externe effekte, Kohlenstoff steuer, Umweltpolitik, global warming, Erderwärmung, market failure, economic instruments, environmental policies, environemntal policy, carbon tax, tradeable property rights, CO2 steuer, Emissionshandel, Emissionen, carbon price, EU ETS, IPCC, ökonomische instrumente