Publication:
Climate Change and the Economics of Targeted Mitigation in Sectors with Long-Lived Capital Stock

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dc.contributor.authorShalizi, Zmarak
dc.contributor.authorLecocq, Franck
dc.date.accessioned2012-03-19T19:12:41Z
dc.date.available2012-03-19T19:12:41Z
dc.date.issued2009-09-01
dc.description.abstractMitigation investments in long-lived capital stock (LLKS) differ from other types of mitigation investments in that, once established, LLKS can lock-in a stream of emissions for extended periods of time. Moreover, historical examples from industrial countries suggest that investments in LLKS projects or networks tend to be lumpy, and tend to generate significant indirect and induced emissions besides direct emissions. Looking forward, urbanization and rapid economic growth suggest that similar decisions about LLKS are being or will soon be made in many developing countries. In their current form, carbon markets do not provide correct incentives for mitigation investments in LLKS because the constraint on carbon extends only to 2012, and does not extend to many developing countries. Targeted mitigation programs in regions and sectors in which LLKS is being built at rapid rate are thus necessary to avoid getting locked into highly carbon-intensive LLKS. Even if the carbon markets were extended (geographically, sectorally, and over time), public intervention would still be required, for three main reasons. First, to ensure that indirect and induced emissions associated with LLKS are taken into account in investor s financial cost-benefit analysis. Second, to facilitate project or network financing to bridge the gap between carbon revenues that accrue over time as the project/network unfolds and the capital needed upfront to finance lumpy investments. Third, to internalize other non-carbon externalities (e.g., local pollution) and/or to lift barriers (e.g., lack of capacity to handle new technologies) that penalize the low-carbon alternatives relative to the high-carbon ones.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090923161232
dc.identifier.doi10.1596/1813-9450-5063
dc.identifier.urihttps://hdl.handle.net/10986/4254
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5063
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectABATEMENT
dc.subjectAGGLOMERATION ECONOMIES
dc.subjectAIR
dc.subjectAIR TRAFFIC
dc.subjectALTERNATIVE ENERGY
dc.subjectALTERNATIVE TRANSPORT
dc.subjectALTERNATIVE TRANSPORTATION
dc.subjectARTERIAL ROADS
dc.subjectARTERY
dc.subjectATMOSPHERIC CONCENTRATION
dc.subjectBASELINE EMISSIONS
dc.subjectBIOMASS
dc.subjectBOILERS
dc.subjectBRIDGE
dc.subjectCALCULATION
dc.subjectCAPITAL INVESTMENT
dc.subjectCAPITAL STOCKS
dc.subjectCAPITAL TURNOVER
dc.subjectCARBON
dc.subjectCARBON CAP
dc.subjectCARBON CAPTURE
dc.subjectCARBON CARS
dc.subjectCARBON CONSTRAINTS
dc.subjectCARBON DIOXIDE
dc.subjectCARBON EMISSION
dc.subjectCARBON EMISSIONS
dc.subjectCARBON ENERGY
dc.subjectCARBON EQUIVALENT
dc.subjectCARBON FINANCE
dc.subjectCARBON INTENSITY
dc.subjectCARBON MARKET
dc.subjectCARBON MARKETS
dc.subjectCARBON TAX
dc.subjectCARS
dc.subjectCERTIFIED EMISSION REDUCTIONS
dc.subjectCH4
dc.subjectCLIMATE
dc.subjectCLIMATE CHANGE
dc.subjectCLIMATE CHANGE MITIGATION
dc.subjectCLIMATE CHANGE NEGOTIATIONS
dc.subjectCLIMATE POLICIES
dc.subjectCLIMATE-CHANGE
dc.subjectCO2
dc.subjectCOAL
dc.subjectCONCENTRATION TARGET
dc.subjectCONGESTION
dc.subjectCONSUMPTION OF ENERGY
dc.subjectCOST OF CARBON
dc.subjectCOST-BENEFIT
dc.subjectCOST-BENEFIT ANALYSIS
dc.subjectCOSTS OF ABATEMENT
dc.subjectCROSSING
dc.subjectDAMAGES
dc.subjectDEMAND FOR ELECTRICITY
dc.subjectDEMAND FOR TRANSPORTATION
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDOMESTIC CARBON
dc.subjectDRIVING
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC PERSPECTIVE
dc.subjectECONOMIES OF SCALE
dc.subjectELECTRICITY
dc.subjectELECTRICITY GENERATION
dc.subjectELECTRICITY PRODUCTION
dc.subjectEMISSION
dc.subjectEMISSION ALLOWANCES
dc.subjectEMISSION PATH
dc.subjectEMISSION PATHS
dc.subjectEMISSION REDUCTION
dc.subjectEMISSION REDUCTIONS
dc.subjectEMISSION TARGETS
dc.subjectEMISSIONS
dc.subjectEMISSIONS ALLOWANCES
dc.subjectEMISSIONS FROM ELECTRICITY GENERATION
dc.subjectEMISSIONS FROM FOSSIL-FUEL COMBUSTION
dc.subjectEMISSIONS FROM LAND-USE CHANGE
dc.subjectEMISSIONS GOALS
dc.subjectEMISSIONS GROWTH
dc.subjectEMISSIONS INTENSITY
dc.subjectEMISSIONS PATH
dc.subjectEMISSIONS PATHS
dc.subjectEMISSIONS PER PASSENGER
dc.subjectEMISSIONS REDUCTION
dc.subjectEMISSIONS SAVINGS
dc.subjectEMISSIONS STANDARDS
dc.subjectEMISSIONS TARGETS
dc.subjectENERGY CONSUMPTION
dc.subjectENERGY DEMAND
dc.subjectENERGY EFFICIENCY
dc.subjectENERGY PRODUCTION
dc.subjectENERGY SECURITY
dc.subjectENERGY SOURCES
dc.subjectEXPRESSWAYS
dc.subjectEXTERNALITIES
dc.subjectFINANCIAL ANALYSIS
dc.subjectFINANCIAL BARRIERS
dc.subjectFLOOR AREA
dc.subjectFLOOR SPACE
dc.subjectFOSSIL FUEL
dc.subjectFOSSIL-FUEL EMISSIONS
dc.subjectFREIGHT
dc.subjectFREIGHT TRANSPORT
dc.subjectFUEL
dc.subjectFUEL EFFICIENCY
dc.subjectFUEL OIL
dc.subjectFUEL SUPPLY
dc.subjectFUEL SWITCHING
dc.subjectFUELS
dc.subjectGAS
dc.subjectGASOLINE
dc.subjectGASOLINE USE
dc.subjectGENERATION CAPACITY
dc.subjectGHG
dc.subjectGLOBAL CLIMATE CHANGE
dc.subjectGREENHOUSE
dc.subjectGREENHOUSE GASES
dc.subjectGREENHOUSE GASES EMISSIONS
dc.subjectHARMFUL EMISSIONS
dc.subjectHEATING SYSTEMS
dc.subjectHEAVY TRUCK TRAFFIC
dc.subjectHFC23
dc.subjectHIGH SPEED TRAIN
dc.subjectHIGH SPEEDS
dc.subjectHIGH-SPEED LINES
dc.subjectHIGH-SPEED RAIL
dc.subjectHIGH-SPEED RAIL NETWORK
dc.subjectHIGH-SPEED TRAIN
dc.subjectHIGHWAY
dc.subjectHIGHWAY ADMINISTRATION
dc.subjectHIGHWAY NETWORK
dc.subjectHIGHWAY PROGRAM
dc.subjectHIGHWAY SYSTEMS
dc.subjectHIGHWAYS
dc.subjectHYDROGEN
dc.subjectINFRASTRUCTURE INVESTMENT
dc.subjectINFRASTRUCTURE PROJECTS
dc.subjectINTERSTATE HIGHWAY SYSTEM
dc.subjectINTERSTATE HIGHWAYS
dc.subjectINVESTMENT DECISIONS
dc.subjectIPCC
dc.subjectLAND USE
dc.subjectLOCAL AIR POLLUTION
dc.subjectLONG-TERM EMISSIONS PATHS
dc.subjectLOW CARBON TECHNOLOGIES
dc.subjectLOW-CARBON
dc.subjectMETHANE
dc.subjectMILEAGE
dc.subjectMODAL SHARE
dc.subjectMODAL SHARES
dc.subjectMODAL SHIFT
dc.subjectN2O
dc.subjectNATIONAL HIGHWAY SYSTEM
dc.subjectNATIONAL RAILWAY
dc.subjectNATURAL GAS
dc.subjectNITROUS OXIDE
dc.subjectNUCLEAR ENERGY
dc.subjectNUCLEAR POWER
dc.subjectNUCLEAR POWER PLANTS
dc.subjectPOLLUTION
dc.subjectPOLLUTION EXTERNALITIES
dc.subjectPOPULATION GROWTH
dc.subjectPOWER GENERATION
dc.subjectPOWER PLANTS
dc.subjectPOWER SECTOR
dc.subjectPRESENT VALUE
dc.subjectPRICE INCENTIVES
dc.subjectPRICE SIGNAL
dc.subjectPUBLIC TRANSIT
dc.subjectPUBLIC TRANSIT SYSTEMS
dc.subjectRAIL
dc.subjectRAIL INFRASTRUCTURE
dc.subjectRAIL NETWORKS
dc.subjectRAIL RIDERSHIP
dc.subjectRAIL TRACK
dc.subjectRAIL TRANSPORTATION
dc.subjectRAILWAY NETWORK
dc.subjectRAILWAYS
dc.subjectRELATIVE PRICE
dc.subjectRENEWABLE ENERGY
dc.subjectRENEWABLE ENERGY SOURCES
dc.subjectRESIDENTIAL USE
dc.subjectRETROFITTING
dc.subjectRIDER
dc.subjectRIDERSHIP
dc.subjectRING ROAD
dc.subjectROAD
dc.subjectROAD INFRASTRUCTURE
dc.subjectROAD NETWORK
dc.subjectROAD TRAFFIC
dc.subjectROADS
dc.subjectRURAL ROADS
dc.subjectSCENARIOS
dc.subjectSUPPLY SIDE
dc.subjectTAX
dc.subjectTOTAL ELECTRICITY GENERATION
dc.subjectTOTAL EMISSIONS
dc.subjectTRADABLE EMISSIONS
dc.subjectTRAINS
dc.subjectTRANSIT
dc.subjectTRANSPORT
dc.subjectTRANSPORT DEMAND
dc.subjectTRANSPORT INFRASTRUCTURE
dc.subjectTRANSPORT INVESTMENT
dc.subjectTRANSPORT SECTOR
dc.subjectTRANSPORTATION
dc.subjectTRANSPORTATION COSTS
dc.subjectTRANSPORTATION DEMAND
dc.subjectTRANSPORTATION INFRASTRUCTURE
dc.subjectTRANSPORTATION NETWORK
dc.subjectTRANSPORTATION NETWORKS
dc.subjectTRANSPORTATION PROBLEMS
dc.subjectTRANSPORTATION PROJECTS
dc.subjectTRANSPORTATION STATISTICS
dc.subjectTRAVEL DEMAND
dc.subjectTRAVEL DISTANCES
dc.subjectTRAVEL TIME
dc.subjectTRIPS
dc.subjectTRUCKS
dc.subjectTRUE
dc.subjectTUNNELS
dc.subjectURBAN HIGHWAY
dc.subjectURBAN TRANSPORTATION
dc.subjectVEHICLE
dc.subjectVEHICLE ENGINES
dc.subjectVEHICLE FLEET
dc.subjectVEHICLE MILES
dc.subjectVEHICLES
dc.subjectWIND
dc.subjectWIND ENERGY
dc.titleClimate Change and the Economics of Targeted Mitigation in Sectors with Long-Lived Capital Stocken
dspace.entity.typePublication
okr.crossref.titleClimate Change And The Economics Of Targeted Mitigation In Sectors With Long-Lived Capital Stock
okr.date.doiregistration2025-04-10T12:05:10.205681Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090923161232
okr.globalpracticeTransport and ICT
okr.globalpracticeEnergy and Extractives
okr.guid209371468336672412
okr.identifier.doi10.1596/1813-9450-5063
okr.identifier.externaldocumentum000158349_20090923161232
okr.identifier.internaldocumentum11115597
okr.identifier.reportWPS5063
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2009/09/23/000158349_20090923161232/Rendered/PDF/WPS5063.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.topicEnergy::Energy Production and Transportation
okr.topicTransport
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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