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Several countries have imposed either a ban or a tax on single-use plastic packaging, motivated by their contribution to marine plastic pollution. This may lead consumers to opt for similar unregulated substitutes, potentially undermining or even counteracting the intended effect of the policy instrument. The purpose of this study is to theoretically and empirically compare the environmental and welfare effects of the first-best Pigouvian taxes on both plastic bags and a substitute (paper bags), with two alternative second-best policy instruments: a tax on plastic products alone, and a common uniform tax on all packaging materials. The empirical analysis accounts for two different types of environmental externalities from the use of both bag types: marine pollution and greenhouse gas emissions. It also compares results for two countries, Denmark and the USA, which differ in the demand for plastic and paper bags. The theoretical analysis shows that a unilateral tax on plastic bags should equal the marginal environmental damage of plastic bags minus a fraction of the marginal environmental cost of paper bags, hence being lower than the Pigouvian tax. The optimal common tax should equal a weighted average of the marginal environmental damage of the two bag types and would be lower than the Pigouvian tax on plastics if the marginal external cost of plastic bags exceeds that for paper bags. The empirical analysis shows that for default parameters, the variation in tax level across the studied scenarios is small. It also shows that if Pigouvian taxes cannot be implemented, a common uniform tax on both bag types would result in a higher welfare gain than a tax on plastic bags alone. Sensitivity analysis reveals that the level of the second-best taxes and their associated environmental and welfare impacts are sensitive to assumptions regarding the littering rate and decay rate of plastic bags in the marine environment. • A separate tax on plastic bags leads to substitution towards unregulated products. • Both plastic bags and substitutes cause marine pollution and GHG emissions. • We estimate first and second-best environmental taxes on plastic and paper bags. • Pigouvian taxes on both plastic and paper bags yield the highest welfare effect. • A uniform tax on all bags yields higher welfare than a single tax on plastic bags. [ABSTRACT FROM AUTHOR]

Feeding the world's population while minimising the contribution of agriculture to climate change is one of the greatest challenges facing modern society. This challenge is particularly pronounced for dairy production where the carbon footprint of products and the mitigation costs are high, relative to other food stuffs. This paper reviews a number of mitigation measures that may be adopted by dairy farmers to reduce greenhouse gas emissions from their farms. A simulation model is developed to assess the cost-benefit of a range of mitigation measures. The model is applied to data from Ireland, a country with a large export-oriented dairy industry, for a range of farms including top, middle and bottom performing farms from a profitability perspective. The mitigation measures modelled included animal productivity, grass production and utilisation, better reproductive performance, early compact calving, reduced crude protein, decreased fertiliser N, protected urea, white clover, slurry tank cover and low emission slurry spreading (LESS). The results show that over half of the greenhouse gas abatement potential and most of the ammonia abatement potential were realised with cost-beneficial measures. Animal and feed-related measures that increased efficiency drove the abatement of GHG emissions. Low-emission slurry spreading was beneficial for the bottom and middle one-third of farms, while protected urea and reducing nitrogen use accounted for most of the ammonia abatement potential for the most profitable farms. Results showed that combining mitigation measures resulted in a decrease of 23%, 19%, and 12% in GHG emissions below 2020 levels for the bottom, middle, and top performing dairy farms, respectively. The findings imply that top dairy farms, that are already managed efficiently and optimally, may struggle to achieve the national and international GHG reduction targets with existing technologies and practices. • The top dairy group may struggle to achieve the 2030 and future GHG reductions targets with existing technologies and practices • 56%–86% of emissions reduction achieved through mitigation measures that were cost effective, net-zero for all three groups • Farm-level MACCs can account for variability in GHG and NH3 mitigation potentials and costs, that are often missed at the sectoral or country level. • The study found that combining mitigation measures resulted in a decrease of 23%, 19%, and 12% in GHG emissions below 2020 levels for the bottom, middle, and top dairy groups, respectively • Farm-level marginal abatement cost curve (MACC) are useful for understanding the capacity to reduce gaseous emissions from specific agricultural systems or farms [ABSTRACT FROM AUTHOR]

The detrimental effects of climate change are becoming pressingly apparent over the decades with policy-makers clumsily grappling with various policies to mitigate on its impacts on their respective economies. However, inefficiencies permeate in the implementation of these policies as they are being implemented only at the end of the process of economic activities. To resolve such a problem, this paper develops an innovative and novel approach to internalize CO 2 emissions by proposing a ramified Taylor rule which captures a climate change premium, the level of which is directly dependent on the extent of deviation of actual CO 2 emissions from its targeted level. The key benefits of the proposed tool are that not only effectiveness level is being bolstered by applying the tool right at the start of the process of economic activities but also that funds collected out of such a climate change premium could empower governments worldwide to vigorously green their economies. The model is tested for a given economy using the DSGE approach with findings attesting to the effectiveness of the proposed tool in curtailing the level CO 2 emissions, independent of the type of monetary shock under scrutiny. Most importantly, depending on the extent of aggressiveness in mitigating the pollutants level, the parameter weight coefficient can be fine-tuned accordingly. • This paper develops an innovative model to internalize CO 2 emissions by linking CO 2 emissions to the macroeconomic state of the economy through the Taylor rule. • The model is tested using DSGE technique on a given economy. • Many benefits emanating from the newly developed model such as policy effectiveness. • A climate change premium is incorporated in the model which can provide funding to green economic activities. • The parameter weight coefficient can be fine-tuned accordingly depending on the degree of aggressiveness of the economy in mitigating CO 2 emissions. [ABSTRACT FROM AUTHOR]

The impact of international trade on greenhouse gas (GHG) emissions has primarily been viewed through the lens of emissions embodied in goods, which flow from lower-income to higher-income countries. This trade has been interpreted as allowing the high-income countries to shirk their responsibilities to address the global climate challenge by offshoring emissions. However, international trade may also have an impact on climate through flows from higher-income to lower-income countries, particularly long-lived capital and durable goods that have the potential to avoid future emissions. Given the innovation resources concentrated in higher-income countries and their historic domination of trade in such long-lived goods, this concept may balance the scales to some degree. This paper briefly develops the concept of future avoided emissions and illustrates it with the empirical case of the United States' trade in battery electric vehicles (BEVs) from 2017 to 2020. • Trade in capital goods may reduce future emissions in importing countries. • Such trade may balance trade in goods that embody emissions. • Trade in BEVs is an example, reducing future emissions from conventional cars. • A case study of US BEV trade reveals a surplus in future avoided emissions. [ABSTRACT FROM AUTHOR]

This paper analyzes the actors in the climate change arena and their influence in directing Mexico toward policies that decrease greenhouse gas emissions, such as the carbon tax and climate change law. The network analysis of the agreement of these laws and public policies in Mexico is a lesson for any country that is in the process of designing and adopting environmental laws. The research is performed using a network analysis that is derived from interviews with various main actors and a discourse analysis of the media. Results show that actors do not coordinate their efforts—they meet frequently but in different inter-ministerial commissions—and do not enforce the same policies. The actors in the industry have formed strong coalitions against the carbon tax and the General Law on Climate Change, whereas international institutions have formed coalitions that support these policies and laws. [ABSTRACT FROM AUTHOR]

A key component of California's cap-and-trade program is the use of carbon offsets as compliance instruments for reducing statewide GHG emissions. Under this program, offsets are tradable credits representing real, verifiable, quantifiable, enforceable, permanent, and additional reductions or removals of GHG emissions. This paper focuses on the permanence and additionality standards for offset credits as defined and operationalized in California's Compliance Offset Protocol for U.S. Forest Projects. Drawing on a review of the protocol, interviews, current offset projects, and existing literature, we discuss how additionality and permanence standards relate to project participation and overall program effectiveness. Specifically, we provide an overview of offset credits as compliance instruments in California's cap-and-trade program, the timeline for a forest offset project, and the factors shaping participation in offset projects. We then discuss the implications of permanence and additionality at both the project and program levels. Largely consistent with previous work, we find that stringent standards for permanent and additional project activities can present barriers to participation, but also, that there may be a trade-off between project quality and quantity (i.e. levels of participation) when considering overall program effectiveness. We summarize what this implies for California's forest offset program and provide suggestions for improvements in light of potential program diffusion and policy learning. [ABSTRACT FROM AUTHOR]

Abstract: Climate change is one of the major worldwide environmental concerns. It is especially the case in many developed countries, where the greenhouse gas emissions responsible for this change are mainly concentrated. For the first time, the Kyoto Protocol includes an international agreement for the reduction of the net emissions of these gases. To fulfil this agreement measures designed to reduce or limit current emissions have to be brought into force. Consequently, fears have arisen about possible consequences on competitiveness and future development of manufacturing activities and the need for support mechanisms for the affected sectors is obvious. In this paper, we carry out a study of the emissions of gases responsible for climate change in Asturias (Spain), a region with an important economic presence of sectors with intensive emissions of CO2, the chief greenhouse gas. To be precise, in the first place, the volumes of direct emissions of the said gases in 1995 were calculated, showing that the sectors most affected by the Kyoto Protocol in Asturias are iron and steel and electricity production. Secondly, input–output analysis was applied to determine the direct and indirect emissions and the direct, indirect and induced emissions of the different production sectors, respectively. The results derived from the direct and indirect emissions analysis and their comparison with the results of the former allow us to reach some conclusions and environmental policy implications. [Copyright &y& Elsevier]

Climate change is identified as a major threat to wetlands. Altered hydrology and rising temperature can change the biogeochemistry and function of a wetland to the degree that some important services might be turned into disservices. This means that they will, for example, no longer provide a water purification service and adversely they may start to decompose and release nutrients to the surface water. Moreover, a higher rate of decomposition than primary production (photosynthesis) may lead to a shift of their function from being a sink of carbon to a source. This review paper assesses the potential response of natural wetlands (peatlands) and constructed wetlands to climate change in terms of gas emission and nutrients release. In addition, the impact of key climatic factors such as temperature and water availability on wetlands has been reviewed. The authors identified the methodological gaps and weaknesses in the literature and then introduced a new framework for conducting a comprehensive mesocosm experiment to address the existing gaps in literature to support future climate change research on wetland ecosystems. In the future, higher temperatures resulting in drought might shift the role of both constructed wetland and peatland from a sink to a source of carbon. However, higher temperatures accompanied by more precipitation can promote photosynthesis to a degree that might exceed the respiration and maintain the carbon sink role of the wetland. There might be a critical water level at which the wetland can preserve most of its services. In order to find that level, a study of the key factors of climate change and their interactions using an appropriate experimental method is necessary. Some contradictory results of past experiments can be associated with different methodologies, designs, time periods, climates, and natural variability. Hence a long-term simulation of climate change for wetlands according to the proposed framework is recommended. This framework provides relatively more accurate and realistic simulations, valid comparative results, comprehensive understanding and supports coordination between researchers. This can help to find a sustainable management strategy for wetlands to be resilient to climate change. [Display omitted] • Drought might shift the role of wetlands from carbon sinks to carbon sources. • Higher temperatures and more rain can maintain the role of wetlands as carbon sinks. • There might be a critical water level at which a wetland can preserve its services. • A new framework for conducting wetland mesocosm experiments has been proposed. • The proposed experiment allows for testing of dynamic process-based model results. [ABSTRACT FROM AUTHOR]

To tackle climate change, Chinese government has applied an array of mitigating measures to reduce CO2 emissions. During the 11th Five-year Plan, Chinese government set the emission reduction target policy to reduce energy consumption per unit of gross domestic product (GDP) by 20%. This paper attempts to estimate the effect of this emission reduction target policy on industrial performance from complexity perspective. The result shows more complex industrial structure is related to less coal consumption. In general, emission reduction target policy has a negative effect on the probability of branching into new industries and lower the productivity and profitability of a given industry. However, this negative effect is weaker for more complex industries. Only for industries with very high complexity, emission reduction target policy can improve the performance of an industry rather than exerting a negative effect. Our finding not only helps to design a more effective policy to achieve industrial development strategy, but also provides a potential way to achieve economic growth while reduce the emission of greenhouse gases at the same time. • We investigate the impact of Emission reduction target policy(ERT) on industrial performance from complexity perspective. • We apply the method of reflection to calculate the Economic Complexity of provinces and Industry Complexity of industries. • More complex industrial structure contributes to the coal consumption reduction. • ERT has negative effects on the probability of branching into new industries, lowers the productivity and profitability of a given industry. • ERT has weaker negative effects for more complex industries. [ABSTRACT FROM AUTHOR]