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.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Climate Change
- Global warming
- Greenhouse gases
- Atmospheric carbon dioxide
- Current and prospective future impacts and risks
- Externalities
- Externalities in the context of greenhouse gases
- Market failure
- Internalization of external effects
- Public goods
- Long-term policy problem
- Free riders
- Time inconsistency
- Domestic politics problem
- Interrelation
- Economic instruments of environmental policy
- Coase Theorem
- Regulatory instruments
- Market-based instruments
- Pigouvian tax
- Comparison of a regulatory instrument and the Pigouvian tax
- Socially optimal level of pollution and the Pigouvian tax level
- Deviation from the optimal tax level and the resulting welfare impact
- Case study-Carbon tax in Switzerland
- Tradeable property rights
- Comparison between a carbon tax and tradable property rights
- Global perspective
- Addressing the long-term policy problem
- Global coverage of emissions under a single carbon price
- Implications related to partial implementation of carbon pricing
- Global collaboration to increase responsible action
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis examines the reasons for insufficient efforts to mitigate climate change and explores economic instruments to address the global problem. It aims to determine the most cost-effective and efficient solution while considering challenges related to global implementation. The thesis focuses on internalizing the externalities of greenhouse gas emissions.
- Climate change and its impact
- Externalities and market failure
- Economic instruments for environmental policy
- Challenges and opportunities for global climate policy
- Internalization of externalities
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction sets the stage by highlighting the urgent need for climate change mitigation. Chapter 2 delves into the science of climate change, exploring the phenomenon of global warming, greenhouse gases, and their impact. Chapter 3 examines the concept of externalities, specifically focusing on the context of greenhouse gases and the challenges of market failure. Chapter 4 analyzes the long-term policy problem related to climate change, including free riders, time inconsistency, and the impact of domestic politics.
Chapter 5 explores economic instruments of environmental policy. It discusses the Coase Theorem, regulatory instruments, and market-based instruments, including the Pigouvian tax and tradeable property rights. The chapter analyzes the effectiveness of different instruments and examines their potential impact on social welfare. A case study on carbon tax in Switzerland is also presented.
Chapter 6 examines the global perspective on climate change, highlighting the challenges of addressing the long-term policy problem, the implications of partial implementation of carbon pricing, and the importance of global collaboration.
Schlüsselwörter (Keywords)
Climate change, greenhouse gas emissions, externalities, market failure, economic instruments, Pigouvian tax, tradeable property rights, carbon pricing, global climate policy, sustainable development.
- Quote paper
- Nina Elbers (Author), 2021, Climate change. Methods to internalize externalities, Munich, GRIN Verlag, https://www.grin.com/document/1040713
