Industria imports oil, produces final goods and wishes to mitigate global warming. Oilrabia exports oil and buys final goods from the other country. Industria uses the carbon tax to impose an import tariff on oil and steal some of Oilrabia's scarcity rent. Conversely, Oilrabia has monopoly power and sets the oil price to steal some of Industria's climate rent. We analyze the relative speeds of ...

This paper sets out my comments on DEFRA's new guidance on how to price greenhouse gas emissions – 'carbon' for short – into economic appraisal in the UK. The DEFRA paper begins by drawing a distinction between the social cost of carbon and the shadow price of carbon for use in government economic appraisal in the UK. While the terminology is confusing, this is an improvement on previous guidan...

Decarbonizing electricity production is central to reducing greenhouse gas emissions. Exploiting intermittent renewable energy resources demands power system planning models with high temporal and spatial resolution. We use a mixed-integer linear programming model – SWITCH – to analyze leastcost generation, storage, and transmission capacity expansion for western North America under various pol...

Due to the movement and complexity of the carbon market, traditional monoscale forecasting approaches often fail to capture its nonstationary and nonlinear properties and accurately describe its moving tendencies. In this study, a multiscale ensemble forecasting model integrating empirical mode decomposition (EMD), genetic algorithm (GA) and artificial neural network (ANN) is proposed to foreca...

There is concern that the carbon prices generated through climate policies are too low to create the incentives necessary to stimulate technological development. This paper empirically analyzes how the Swedish carbon dioxide (CO2) tax and the European Union emission trading system (EU ETS) have affected productivity development in the Swedish pulp and paper industry 1998-2008. A Luenberger tota...

An ordinary steam turbine retrofit project is selected as a case study; through the retrofit, the project activities will generate emission reductions within the power grid for about 92,463 tCO(2)e per annum. The internal rate of return (IRR) of the project is only -0.41% without the revenue of carbon credits, for example, CERs, which is much lower than the benchmark value of 8%. Only when the ...

Energy and carbon intensities of aggregate economic activities, as measured by the gross domestic product, have generally been declining since the onset of industrialization two centuries ago (Grübler and Nakicenovic 1996). This historical tendency can be observed for most countries, and for some throughout the industrialization process during the past two centuries, as will be shown for the Un...