Publication:
Do Intensity Targets Control Uncertainty Better than Quotas? Conditions, Calibrations, and Caveats

dc.contributor.authorMarschinski, Robert
dc.contributor.authorLecocq, Franck
dc.date.accessioned2012-06-26T14:27:38Z
dc.date.available2012-06-26T14:27:38Z
dc.date.issued2006-10
dc.description.abstractAmong policy instruments to control future greenhouse gas emissions, well-calibrated general intensity targets are known to lead to lower uncertainty on the amount of abatement than emissions quotas (Jotzo and Pezzey 2004). The authors test whether this result holds in a broader framework, and whether it applies to other policy-relevant variables as well. To do so, they provide a general representation of the uncertainty on future GDP, future business-as-usual emissions, and future abatement costs. The authors derive the variances of four variables, namely (effective) emissions, abatement effort, marginal abatement costs, and total abatement costs over GDP under a quota, a linear (LIT) and a general intensity target (GIT)-where the emissions ceiling is a power-law function of GDP. They confirm that GITs can yield a lower variance than a quota for marginal costs, but find that this is not true for total costs over GDP. Using economic and emissions scenarios and forecast errors of past projections, the authors estimate ranges of values for key parameters in their model. They find that quotas dominate LITs over most of this range, that calibrating GITs over this wide range is difficult, and that GITs would yield only modest reductions in uncertainty relative to quotas.en
dc.identifierhttp://documents.worldbank.org/curated/en/2006/10/7125500/intensity-targets-control-uncertainty-better-quotas-conditions-calibrations-caveats
dc.identifier.urihttps://hdl.handle.net/10986/9016
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4033
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectABATEMENT
dc.subjectABATEMENT COST
dc.subjectABATEMENT COSTS
dc.subjectABATEMENT LEVEL
dc.subjectBASELINE EMISSIONS
dc.subjectBENCHMARK
dc.subjectCARBON
dc.subjectCLIMATE
dc.subjectCLIMATE CHANGE
dc.subjectCLIMATE POLICIES
dc.subjectCLIMATE POLICY
dc.subjectCO2
dc.subjectCO2 EMISSIONS
dc.subjectCOST FUNCTIONS
dc.subjectCUMULATIVE EMISSIONS
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectECONOMIC INSTRUMENTS
dc.subjectECONOMICS RESEARCH
dc.subjectEFFECTIVE EMISSIONS
dc.subjectELASTICITY
dc.subjectEMISSION
dc.subjectEMISSION REDUCTIONS
dc.subjectEMISSIONS
dc.subjectEMISSIONS REDUCTION
dc.subjectEMISSIONS RELATIVE
dc.subjectEXPECTED VALUE
dc.subjectFORECASTS
dc.subjectFORESTRY
dc.subjectFUEL
dc.subjectFUEL COMBUSTION
dc.subjectFUNCTIONAL FORMS
dc.subjectGDP
dc.subjectGREENHOUSE
dc.subjectGREENHOUSE GAS
dc.subjectGREENHOUSE GAS EMISSIONS
dc.subjectGREENHOUSE GASES
dc.subjectGREENHOUSE GASES EMISSIONS
dc.subjectINDEXATION
dc.subjectINTERGOVERNMENTAL PANEL ON CLIMATE CHANGE
dc.subjectIPCC
dc.subjectKYOTO PROTOCOL
dc.subjectLEVEL OF EMISSIONS
dc.subjectLOWER EMISSIONS
dc.titleDo Intensity Targets Control Uncertainty Better than Quotas? Conditions, Calibrations, and Caveatsen
dspace.entity.typePublication
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2006/10/7125500/intensity-targets-control-uncertainty-better-quotas-conditions-calibrations-caveats
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeTransport and ICT
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeEnergy and Extractives
okr.globalpracticeEnergy and Extractives
okr.guid890861468329459177
okr.identifier.doi10.1596/1813-9450-4033
okr.identifier.externaldocumentum000016406_20061012094945
okr.identifier.internaldocumentum7125500
okr.identifier.reportWPS4033
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/10/12/000016406_20061012094945/Rendered/PDF/wps4033.pdfen
okr.topicEconomic Theory and Research
okr.topicEnergy::Energy and Environment
okr.topicTransport and Environment
okr.topicEnvironment::Environment and Energy Efficiency
okr.topicClimate Change
okr.topicTransport
okr.topicMacroeconomics and Economic Growth
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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