We model EU-type carbon emissions control in a group of countries to explore the distributional incidence of mixed policies that consist of an emissions trading scheme (ETS) and of emissions taxes overlapping with the ETS. Such policies impact on national welfares through both the overlapping taxes and the distribution of national emissions caps. Our main proposition is an equivalence result stating that for every mixed policy, there exists an ETS policy without overlapping taxes yielding the same levels of national welfare as the mixed policy. We also suggest two measures of the net distributional incidence of mixed policies.
This paper studies the Swedish prohibition of the hazardous solvent Trichloroethylene (TCE). Sweden is alone in completely prohibiting its use. The ban has been at best a partial success and illustrates the dilemmas of policymaking. Use has declined but not stopped, largely because the decision to ban TCE was challenged in the courts. Recently, the EU Court of Justice decided in favor of Sweden’s right to have a ban. This article analyzes abatement cost data to show that the cost of replacing TCE is low for most plants, although there appear to be a few firms for which it may be quite high. A crosscountry comparison indicates that the Swedish ban was less effective than the very strict technical requirements in Germany or the tax used in Norway. A tax (or deposit refund scheme) would be a good mechanism to achieve a swift phaseout.
Without participation of the United States, the world’s largest emitter of greenhouse gases, mitigation of global climate change seems hardly conceivable. Despite the U.S. rejection of the Kyoto Protocol and the reluctance of the Bush administration to engage in Post-Kyoto negotiations, recent developments suggest that the U.S. position towards climate policy might change in the medium run. This study provides an overview on current trends in U.S. climate policy. Besides the main elements of national climate policy proposals and state-level initiatives the climate contents in the U.S. presidential candidates’ agendas are outlined. Based on this overview recent trends in U.S. climate policy are related to the European approach to combat climate change. Furthermore, we elaborate on the aspects which may be important for Europe to design its own domestic and international climate policy in order to achieve the long-term goal of stabilizing greenhouse gas concentrations.
This article examines how far the EU has succeded in producing a secular convergence of the content, structure and style of national environmental policies. Using fresh empirical evidence collected from ten national environmental policies, it presents a very mixed pattern of change, with some elements of national policy converging more rapidly (and through different causal pathways) than others. These findings are viewed through the lens of popular theories of structural convergence, integration and Europeanisation respectively, to reach a fuller understanding of the pathways and outcomes of any policy convergence in an enlarging EU.
Quality labels are not new, but the last decade saw labeling schemes to be increasingly targeted at expert qualities – i.e. qualities involving a high degree of scientific expertise in order to be assessed. The paper takes a close look at the regulatory and institutional framework underlying the development of one of these labels: the EU ecolabeling program (CEE, 1992). In order to better understand the conditions for the development of product ecolabels, we examine a success story, the case of the paints and varnishes European Ecolabel and contrast it the result with case of industrial opposition (detergent industry). The comparison pints at the importance of the negotiation phase in the development of product ecolabels. It also suggests that the degree of technological heterogeneity of the concerned industry - i.e. the extent to which the environmental performance of the products sold by the different firms are different - may be a variable determining the chances of success in the development of an ecolabel. The conclusion examines the lessons that can be drawn for the development of environmentally effective product ecolabels. It proposes tracks for further research on the subject.
German wind power development is a technological success story but has involved very high subsidies. Germany was a latecomer in wind power but specific political conditions in the late 1980s and early 1990s allowed the implementation of the feed in tariff regime which has characterised Germany ever since. The wind lobby managed to constitute itself at an early stage and to develop stable alliances with farmers and regional policymakers. The concentration of the wind industry in structurally weak regions reinforced these links. With an increased visibility of the subsidies and saturation of onshore sites in the early 2000s, the lobby has been less successful in retaining support. The current attempt to develop offshore projects may suffer from less favourable interest constellations.
Since the early 1990s, national ecolabelling programmes have proliferated worldwide. The European Union (EU) implemented such a regional program in 1991. This decision was part of a broader orientation towards Integrated Product Policy approach in the EU. Since 1991, the development of European ecolabels has been slow and difficult. This paper examines industrial strategies vis-à-vis the EU ecolabel in order to understand the problems faced by the regulator in the development of this ecolabel.
The first part of the paper defines and uses the concept of credence good in order to argue that the consumer cannot assess the ecolabel. Based on the examination of the development of the European ecolabel, the second part points out three variables that seem to influence the development of product eco-labels : i) the type of industry (i.e. the degree of heterogeneity between the sets of products sold by the different firms); ii) the threat of direct governmental regulation on the environmental quality of the product; and, iii) the magnitude of the final demand for a green variant of the product. The paper concludes with a discussion of on policy implications for policy makers interested in considering or promoting the use of ecolabels.
Next year the European Commission will release its Fifth Environmental Action Plan, which will set out its plans for environmental policy over the next five years. In an all embracing speech to the European Environment Conference, Philip Ryan of DG XI proposes that it is time for the EC's environmental policy to move into a new gear, suggesting that this will involve a fundamental reappraisal of socio-economic activity and the application of a significantly broader range of instruments.
Against the background of deepening concern for the environment and natural resources, and the realisation of the negative economic effects of environmental degradation, it is now clear that environmentally sound industry is no longer a matter of luxury but rather a matter of necessity.
Recent developments in Irish environmental policy have paved the way for the establishment of an environmental agency to monitor environmental quality and enforce regulations. Irish proposals for an agency for integrated pollution monitoring and control are very much in keeping with current EC thinking as outlined in the Fifth Environmental Action Programme and by the proposed European Environment Agency. P J Geraghty examines the new Irish legislation and outlines some of the reactions that it has drawn.
Discussion over post-2012 climate policy is now entering a crucial phase. Despite the potential great risks of prolonged global warming, the success of an international climate stabilization agreement hinges to a great extent on its economic feasibility. This article makes precise the assumptions that underpin current mainstream estimates of the costs of controlling climate change and provides quantitative estimates of cost differentials under different scenarios. In particular, the article analyses the role of three utmost factors in the economic cost of a climate treaty: energy technology development; the participation rate of developing countries; and the timing of global action. We show that all three factors have a major impact on policy macroeconomic costs. Addressing them effectively is therefore indispensable in ensuring the feasibility of any international agreement to control global warming. Therefore, we propose a series of policy recommendations that can help addressing the issues of technology, timing and participation, and that represent key policy implications for a post-2012 climate policy. (JEL codes: C72, H23, Q25, Q28)
To achieve significant reductions in European acidification emissions, side-payments to less affluent countries are not only desirable, but also probably necessary. An Acidification Fund to support reductions to which the richer European countries donate and from which the less affluent ones receive money is one of the possibilities. Simple rules based on GDP, GDP per capita and abatement costs in each country are proposed to determine contributions to and receipts from such a fund. Within this paper, potential payments to and receipts from the fund are calculated for the reduction scenario used as a reference in the negotiations for the new sulphur protocol which is to be signed in May of this year. The paper discusses the advantages and disadvantages of such a fund, the role of institutions governing the payments and receipts, and the obligations of the countries who may receive payments.
In a review of the problems which accountants face in trying to integrate environmental considerations into their well defined procedures, Brendan Quirke argues for the establishment of an Auditor-General for the environment and the redefinition of accounting concepts and methodology.
In the brief transition to a market economy, Poland has experienced rapid growth in the number of private automobiles that has contributed to increasing mobile source emissions and urban congestion. Current projections indicate that the number of vehicles per capita will be comparable to many countries in Western Europe by 2010. Poland has recently adopted a number of measures to address simultaneously mobile source pollution and harmonise with the environmental directives of the European Union. Key measures adopted to date include reductions in the lead content of leaded fuels, incentives for greater use of unleaded fuel, reductions in sulphur content of fuels and requirements for catalytic converters to begin in 1995. Additional measures such as higher fuel and vehicle taxes and policies to limit vehicle access in city centres will be needed in the next decade.
This paper presents the main features of the Dutch covenant approach regarding the control of industrial emissions. The covenants are agreements between central government, licencing authorities and particular sectors of industry. The agreements provide for detailed arrangements regarding the implementation of sector specific medium and longer term emission reduction targets. Companies are expected to draw up medium term company environmental plans which after approval by the authorities will serve as a basis for formal licencing procedures. Central government and licencing authorities will take appropriate measures to ensure a co-ordinated approach in licencing and to avoid as much as possible distortions in competitive relations. Implementation of the covenants is being monitored and evaluated by Sectoral Consultative Committees that will issue annual progress reports to the Minister of the Environment.