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Taxing interacting externalities of ocean acidification, global warming, and eutrophication
We model a stylized economy dependent on agriculture and fisheries to study optimal environmental policy in the face of interacting external effects of ocean acidification, global warming, and eutrophication. This allows us to capture some of the latest insights from research on ocean acidification. Using a static two-sector general equilibrium model we derive optimal rules for national taxes on (Formula presented.) emissions and agricultural run-off and show how they depend on both isolated and interacting damage effects. In addition, we derive a second-best rule for a tax on agricultural run-off of fertilizers for the realistic case that effective internalization of (Formula presented.) externalities is lacking. The results contribute to a better understanding of the social costs of ocean acidification in coastal economies when there is interaction with other environmental stressors. Recommendations for Resource Managers: Marginal environmental damages from (Formula presented.) emissions should be internalized by a tax on (Formula presented.) emissions that is high enough to not only reflect marginal damages from temperature increases, but also marginal damages from ocean acidification and the interaction of both with regional sources of acidification like nutrient run-off from agriculture. In the absence of serious national policies that fully internalize externalities, a sufficiently high tax on regional nutrient run-off of fertilizers used in agricultural production can limit not only marginal environmental damages from nutrient run-off but also account for unregulated carbon emissions. Putting such regional policies in place that consider multiple important drivers of environmental change will be of particular importance for developing coastal economies that are likely to suffer the most from ocean acidification. © 2021 The Authors. Natural Resource Modeling published by Wiley Periodicals LLC.
Ten new insights in climate science 2020 – a horizon scan
Non-technical summary: We summarize some of the past year's most important findings within climate change-related research. New research has improved our understanding of Earth's sensitivity to carbon dioxide, finds that permafrost thaw could release more carbon emissions than expected and that the uptake of carbon in tropical ecosystems is weakening. Adverse impacts on human society include increasing water shortages and impacts on mental health. Options for solutions emerge from rethinking economic models, rights-based litigation, strengthened governance systems and a new social contract. The disruption caused by COVID-19 could be seized as an opportunity for positive change, directing economic stimulus towards sustainable investments. Technical summary: A synthesis is made of ten fields within climate science where there have been significant advances since mid-2019, through an expert elicitation process with broad disciplinary scope. Findings include: (1) a better understanding of equilibrium climate sensitivity; (2) abrupt thaw as an accelerator of carbon release from permafrost; (3) changes to global and regional land carbon sinks; (4) impacts of climate change on water crises, including equity perspectives; (5) adverse effects on mental health from climate change; (6) immediate effects on climate of the COVID-19 pandemic and requirements for recovery packages to deliver on the Paris Agreement; (7) suggested long-term changes to governance and a social contract to address climate change, learning from the current pandemic, (8) updated positive cost-benefit ratio and new perspectives on the potential for green growth in the short- A nd long-term perspective; (9) urban electrification as a strategy to move towards low-carbon energy systems and (10) rights-based litigation as an increasingly important method to address climate change, with recent clarifications on the legal standing and representation of future generations. Social media summary: Stronger permafrost thaw, COVID-19 effects and growing mental health impacts among highlights of latest climate science. Copyright © The Author(s), 2021. Published by Cambridge University Press.
Exploring Global Climate Policy Futures and Their Representation in Integrated Assessment Models
The Paris Agreement, adopted in 2015, paved the way for a new hybrid global climate governance architecture with both bottom‐up and top‐down elements. While governments can choose individual climate goals and actions, a global stocktake and a ratcheting‐up mechanism have been put in place with the overall aim to ensure that collective efforts will prevent increasing adverse impacts of climate change. Integrated assessment models show that current combined climate commitments and policies of national governments fall short of keeping global warming to 1.5 °C or 2 °C above preindustrial levels. Although major greenhouse gas emitters, such as China, the European Union, India, the United States under the Biden administration, and several other countries, have made new pledges to take more ambitious climate action, it is highly uncertain where global climate policy is heading. Scenarios in line with long‐term temperature targets typically assume a simplistic and hardly realistic level of harmonization of climate policies across countries. Against this backdrop, this article develops four archetypes for the further evolution of the global climate governance architecture and matches them with existing sets of scenarios developed by integrated assessment models. By these means, the article identifies knowledge gaps in the current scenario literature and discusses possible research avenues to explore the pre‐conditions for successful coordination of national policies towards achieving the long‐term target stipulated in the Paris Agreement.