Publication:
Climate Change and Fiscal Policy : A Report for APEC

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dc.contributor.authorWorld Bank
dc.date.accessioned2012-03-19T10:12:06Z
dc.date.available2012-03-19T10:12:06Z
dc.date.issued2011-01-31
dc.description.abstractAsia-Pacific Economic Cooperation (APEC) economies display large variation in terms of income per capita. The richest APEC economies have an income per capita about twenty times higher than the poorest ones. So far most work on fiscal policy and climate change has been written with developed economies in mind. This report on the use of fiscal policies for mitigating and adapting to climate change effects corrects that bias with a particular focus on the developing economies of APEC. It also plays close attention to lessons that could be learnt from the advanced economies of APEC and elsewhere. On mitigation, the report notes that achieving the ambitious targets adopted by APEC economies will depend crucially the choice of fiscal policy instruments. These choices will depend, in turn, on the characteristics of developing economies, particularly of their energy sectors. Specifically, mitigation in developing countries requires a broad-based response with four key components. First, carbon pricing will be critical, but will not be sufficient and in some economies and some sectors may have little or no impact due to pre-existing distortions. Second, energy sector reforms that liberalize markets and establish effective regulators so that policies can support appropriate carbon prices and cost pass-through in the energy sector will be key. Third, broader economic reforms may also be important to off-set current bias towards capital and energy intensive economic growth. Fourth, technology-based mitigation policies will also be needed, but, given the mixed track record in this area, must be chosen with care. Given the many uncertainties involved, and the multiple reforms needed, a verifiable quantity anchor for mitigation policy is recommended for developing economies, such as the energy-intensity target recently adopted by China. On the adaptation side, fiscal analysis has so far largely focused on cost projections, but for policy makers adaptation instruments and decision-making tools are as or more important. Adaptation instruments include the provision of public and club goods (such as infrastructure), public sector pricing reform (in particular of water) and financial instruments (microcredit and insurance) which can be cost-effective alternatives to subsidies. Key to the right choice of instruments (which will vary from location to location) will be the correct use of appropriate decision-making tools. In particular, the social costs and benefits of alternative strategies need to be analyzed under conditions of uncertainty, in many ways the hallmark of climate change. Popular tools such as multi-criteria analysis, vulnerability indexes, and cost- effectiveness analysis are inadequate to the task. A combination of Monte Carlo and 'real options' analysis within a cost-benefit framework is recommended for adaptation projects. Examples from a range of economies are provided to demonstrate the utility of such an approach.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=000333038_20110201000150
dc.identifier.doi10.1596/2734
dc.identifier.urihttps://hdl.handle.net/10986/2734
dc.languageEnglish
dc.publisherWorld Bank
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectABATEMENT
dc.subjectABSOLUTE EMISSIONS
dc.subjectACID
dc.subjectACID RAIN
dc.subjectADAPTATION TO CLIMATE CHANGE
dc.subjectAIR
dc.subjectAIR POLLUTION
dc.subjectAIR POLLUTION PROBLEMS
dc.subjectALLOCATION
dc.subjectALUMINUM
dc.subjectANNUAL GLOBAL EMISSIONS
dc.subjectANTHROPOGENIC EMISSIONS
dc.subjectAPPROACH
dc.subjectAVAILABILITY
dc.subjectBALANCE
dc.subjectBIOMASS
dc.subjectBUSINESS AS USUAL SCENARIO
dc.subjectCALCULATION
dc.subjectCAPITAL COSTS
dc.subjectCARBON
dc.subjectCARBON DIOXIDE
dc.subjectCARBON DIOXIDE EMISSIONS
dc.subjectCARBON INTENSITY
dc.subjectCARBON PRICE
dc.subjectCARBON PRICES
dc.subjectCARBON TAX
dc.subjectCEMENT
dc.subjectCLEAN ENERGY
dc.subjectCLEANER ENERGY
dc.subjectCLIMATE
dc.subjectCLIMATE CHANGE
dc.subjectCLIMATE CHANGE ECONOMICS
dc.subjectCLIMATE CHANGE IMPACTS
dc.subjectCLIMATE CHANGE MITIGATION
dc.subjectCLIMATE ECONOMICS
dc.subjectCLIMATE LEGISLATION
dc.subjectCLIMATE POLICY
dc.subjectCLIMATE-CHANGE
dc.subjectCLIMATE-CHANGE MITIGATION
dc.subjectCLIMATIC CHANGES
dc.subjectCO
dc.subjectCO2
dc.subjectCOAL
dc.subjectCOAL CONSUMPTION
dc.subjectCOAL PRICES
dc.subjectCOAL PRODUCTION
dc.subjectCOASTAL AREAS
dc.subjectCONSUMER DEMAND
dc.subjectCONSUMPTION OF COAL
dc.subjectCONVERGENCE
dc.subjectCOST-BENEFIT
dc.subjectCOST-BENEFIT ANALYSIS
dc.subjectCOST-BENEFIT FRAMEWORK
dc.subjectCOST-EFFECTIVENESS ANALYSIS
dc.subjectCUMULATIVE EMISSIONS
dc.subjectDAMAGES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDISCOUNT RATE
dc.subjectDISTRIBUTION OF COSTS
dc.subjectDIVERGENCE
dc.subjectDOMESTIC OIL
dc.subjectDOMESTIC OIL PRODUCTION
dc.subjectECONOMIC ANALYSIS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC IMPACT
dc.subjectECONOMIC INDICATORS
dc.subjectECONOMIC PERSPECTIVE
dc.subjectECONOMIC POLICIES
dc.subjectELECTRICITY
dc.subjectELECTRICITY DISPATCH
dc.subjectELECTRICITY GENERATION
dc.subjectELECTRICITY PRICES
dc.subjectELECTRICITY SECTOR
dc.subjectEMISSION
dc.subjectEMISSION CONTROL
dc.subjectEMISSION REDUCTIONS
dc.subjectEMISSIONS
dc.subjectEMISSIONS CONTROL
dc.subjectEMISSIONS FROM COAL
dc.subjectEMISSIONS FROM DEFORESTATION
dc.subjectEMISSIONS GROWTH
dc.subjectEMISSIONS INTENSITY
dc.subjectEMISSIONS REDUCTION
dc.subjectEMISSIONS REDUCTIONS
dc.subjectEMISSIONS TARGETS
dc.subjectENERGY BILLS
dc.subjectENERGY CONSUMPTION
dc.subjectENERGY COSTS
dc.subjectENERGY EFFICIENCY
dc.subjectENERGY INTENSITY
dc.subjectENERGY INTENSIVE
dc.subjectENERGY MARKETS
dc.subjectENERGY POLICIES
dc.subjectENERGY PRICE
dc.subjectENERGY PRICES
dc.subjectENERGY PRICING
dc.subjectENERGY PRODUCTION
dc.subjectENERGY SECURITY
dc.subjectENERGY SHORTAGES
dc.subjectENERGY SOURCES
dc.subjectENERGY SUBSIDIES
dc.subjectENERGY USE
dc.subjectENVIRONMENTAL DECISIONS
dc.subjectENVIRONMENTAL ECONOMICS
dc.subjectENVIRONMENTAL GOALS
dc.subjectENVIRONMENTAL OUTCOMES
dc.subjectENVIRONMENTAL PROBLEMS
dc.subjectENVIRONMENTAL PROTECTION
dc.subjectFEASIBILITY
dc.subjectFINANCIAL ASSISTANCE
dc.subjectFINANCIAL CONSTRAINTS
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL INSTRUMENTS
dc.subjectFINANCIAL SECTOR
dc.subjectFISCAL POLICIES
dc.subjectFLOODS
dc.subjectFOREST
dc.subjectFOREST COVERAGE
dc.subjectFOREST DEGRADATION
dc.subjectFOREST STOCK
dc.subjectFORESTRY
dc.subjectFOSSIL
dc.subjectFOSSIL FUEL
dc.subjectFOSSIL FUEL EMISSIONS
dc.subjectFOSSIL FUEL USE
dc.subjectFOSSIL FUELS
dc.subjectFRAMEWORK CONVENTION ON CLIMATE CHANGE
dc.subjectFUEL COSTS
dc.subjectGAS
dc.subjectGASOLINE
dc.subjectGASOLINE PRICES
dc.subjectGASOLINE TAX
dc.subjectGHG
dc.subjectGLOBAL EMISSIONS
dc.subjectGREEN PAPER
dc.subjectGREENHOUSE
dc.subjectGREENHOUSE GAS
dc.subjectGREENHOUSE GAS EMISSIONS
dc.subjectGREENHOUSE GASES
dc.subjectGROWTH IN DEMAND
dc.subjectHEAVY INDUSTRY
dc.subjectHIGH ENERGY INTENSITY
dc.subjectHIGHER ENERGY PRICES
dc.subjectHYDROGEN
dc.subjectIMPORTS
dc.subjectINCOME
dc.subjectINCOME HOUSEHOLDS
dc.subjectINSURANCE
dc.subjectINVESTMENT DECISIONS
dc.subjectMARGINAL UTILITY
dc.subjectMARKET DISTORTIONS
dc.subjectMARKET FAILURES
dc.subjectMITIGATION TECHNOLOGIES
dc.subjectNATIONAL EMISSIONS
dc.subjectOIL
dc.subjectOIL CRISIS
dc.subjectOIL EQUIVALENT
dc.subjectOIL IMPORTS
dc.subjectOIL PRODUCTION
dc.subjectOIL USE
dc.subjectPER CAPITA INCOME
dc.subjectPOLICY MAKERS
dc.subjectPOWER SECTOR
dc.subjectPOWER SHORTAGES
dc.subjectPRECAUTIONARY PRINCIPLE
dc.subjectPRESENT VALUE
dc.subjectPRICE OF COAL
dc.subjectPRIMARY ENERGY
dc.subjectPRIMARY ENERGY CONSUMPTION
dc.subjectPROBABILITY DISTRIBUTION
dc.subjectPROBABILITY DISTRIBUTIONS
dc.subjectR&D FUNDING
dc.subjectRAINFALL
dc.subjectRATIO OF ENERGY CONSUMPTION
dc.subjectREDUCTION IN EMISSIONS
dc.subjectRELATIVE PRICE
dc.subjectRENEWABLE ENERGY
dc.subjectRENEWABLE ENERGY PROJECTS
dc.subjectRENEWABLE ENERGY TECHNOLOGY
dc.subjectRESPONSE TO CLIMATE CHANGE
dc.subjectSOLAR POWER
dc.subjectSUBSTITUTION
dc.subjectSULPHUR
dc.subjectSUSTAINABLE DEVELOPMENT
dc.subjectTAX CREDITS
dc.subjectTAX RATES
dc.subjectTOTAL EMISSIONS
dc.subjectTRADITIONAL ENERGY SECTOR
dc.subjectTRADITIONAL FUELS
dc.subjectTRANSMISSION CONSTRAINTS
dc.subjectTRANSPORT SECTOR
dc.subjectUNCERTAINTIES
dc.subjectUTILITIES
dc.subjectVEHICLES
dc.subjectWELFARE CONSEQUENCES
dc.subjectWIND
dc.subjectWIND ENERGY
dc.subjectWIND INDUSTRY
dc.subjectWIND POWER
dc.subjectWORLD ENERGY
dc.titleClimate Change and Fiscal Policy : A Report for APECen
dspace.entity.typePublication
okr.crosscuttingsolutionareaClimate Change
okr.date.disclosure2011-02-01
okr.date.doiregistration2025-05-07T11:15:53.061333Z
okr.doctypeEconomic & Sector Work::Other Environmental Study
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333038_20110201000150
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeEnergy and Extractives
okr.globalpracticeEnergy and Extractives
okr.guid110951468234870585
okr.identifier.externaldocumentum000333038_20110201000150
okr.identifier.internaldocumentum13711676
okr.identifier.report56563
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/02/01/000333038_20110201000150/Rendered/PDF/565630REV0ESW010Policy01Jan13112011.pdfen
okr.region.administrativeEast Asia and Pacific
okr.sectorRenewable energy
okr.sectorOther domestic and international trade
okr.sectorGeneral industry and trade sector
okr.sectorGeneral finance sector
okr.sectorEnergy and mining
okr.sectorIndustry and trade
okr.sectorFinance
okr.topicEnvironment::Climate Change Mitigation and Green House Gases
okr.topicMacroeconomics and Economic Growth::Climate Change Economics
okr.topicEnergy::Energy and Environment
okr.topicEnergy::Energy Production and Transportation
okr.topicEnvironment::Environment and Energy Efficiency
okr.unitHQ PREM Sector (EASPW)
okr.volume1 of 1
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