Evaluating the trade-offs between the risks related to climate change, climate change mitigation as well as co-benefits requires an integrated scenarios approach to sustainable development. We outline a conceptual multi-objective framework to assess climate policies that takes into account climate impacts, mitigation costs, water and food availability, technological risks of nuclear energy and carbon capture and sequestration as well as co-benefits of reducing local air pollution and increasing energy security.

Introducing a price on greenhouse gas emissions would not only contribute to reducing the risk of dangerous anthropogenic climate change, but would also generate substantial public revenues. Some of these revenues could be used to cover investment needs for infrastructure providing access to water, sanitation, electricity, telecommunications, and transport.

The literature on the “resource curse” has strongly emphasized that large incomes from resource endowments may have adverse effects on the growth prospects of a country. Conceivably the income generated from emission permit allocations, as suggested in the context of international climate policy, could have a comparable impact. Effects of a “climate rent curse” have so far not been considered in the design of permit allocation schemes. In this study, we first determine when to expect a climate rent curse conceptually by analyzing its potential channels.

Although market-based environmental policy instruments feature prominently in economic theory and are widely employed, they often face public resistance. We argue that such resistance may be driven by moral responsibility, where citizens prefer to tackle the environmental problems that they have caused by themselves, rather than delegating the task to others by means of a market mechanism.

Mexico recently declared ambitious goals in reducing domestic CO2 emissions and introduced a carbon tax in 2014. Although negative effects on household welfare and related poverty measures are widely discussed as possible consequences, empirical evidence is missing.

We analyse the effects of environmental taxes on welfare and carbon emissions at the household level for the case of Mexico. The integrated welfare-environmental analysis, which is based on a censored energy consumer demand system, extends previous work in two ways.

We estimate the cumulative future emissions expected to be released by coal power plants that are currently under construction, announced, or planned. Even though coal consumption has recently declined and plans to build new coal-fired capacities have been shelved, constructing all these planned coal-fired power plants would endanger national and international climate targets. Plans to build new coal-fired power capacity would likely undermine the credibility of some countries' (Intended) Nationally Determined Contributions submitted to the UNFCCC.

A global uniform carbon price would be economically efficient and at the same time avoid ‘carbon-leakage’. Still, it will affect the competitiveness of specific industries, economic activity and employment across countries. This paper assesses short-term economic shocks following the introduction of a global carbon price that would be in line with the Paris Agreement. Based on the World Input-Output Database (WIOD), we trace the carbon content of final output through global supply chains.

Economic development in sub-Saharan Africa has increased carbon emissions and will continue to do so. However, changes in emissions in the past few decades and their underlying drivers are not well understood. Here we use a Kaya decomposition to show that rising carbon intensity has played an increasingly important role in emission growth in sub-Saharan Africa since 2005. These changes have mainly been driven by the increasing use of oil, especially in the transportation sector.

This paper develops a new perspective on stranded assets in climate policy using a partial equilibrium model of the energy sector. Political-economy related aspects are considered in the government's objective function. Lobbying power of firms or fiscal considerations by the government lead to time inconsistency: The government will deviate from a previously announced carbon tax which creates stranded assets.