Publication: Carbon Offsets with Endogenous Environmental Policy
Abstract
Interests in obtaining carbon offsets in host countries for CDM projects may serve as an obstacle to implementing more stringent general environmental policies in the same countries. A relatively lax environmental policy, whereby carbon emissions remain high, can be advantageous for such countries as it leaves them with a higher than otherwise scope for future emissions reductions through CDM and other offset projects. In this paper, the potential to affect the availability of future CDM projects is shown to distort environmental and energy policies of CDM host countries, in two ways. First, policies to reduce the use of fossil energy are weakened. This in turn weakens private sector incentives to switch to lower-carbon technology through CDM projects. CDM host governments then also find it attractive to subsidize this switch, in order to maximize the country's advantage from the CDM.
Link to Data Set
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Citations
Collections
Related items
Showing items related by metadata.
Publication Carbon Offsets with Endogenous Environmental Policy(2010-05-01)Interests in obtaining carbon offsets in host countries for Clean Development Mechanism projects may serve as an obstacle to implementing more stringent general environmental policies in the same countries. A relatively lax environmental policy, whereby carbon emissions remain high, can be advantageous for such countries as it leaves them with a higher than otherwise scope for future emissions reductions through Clean Development Mechanism and other offset projects. In this note, the potential to affect the availability of future Clean Development Mechanism projects is shown to distort environmental and energy policies of Clean Development Mechanism host countries in two ways. Measures to reduce use of fossil energy are weakened. Because this weakens private sector incentives to switch to lower-carbon technology through Clean Development Mechanism projects, host governments then also find it attractive to subsidize this switch, in order to maximize the country s advantage from the Clean Development Mechanism.Publication Monitoring Environmental Sustainability(World Bank, Washington, DC, 2010-12-09)This report presents a concise review of the major environmental and natural resources issues at the global and national level over the coming two decades. The environmental issues reviewed include air pollution and deterioration of air quality, greenhouse gas emissions and climate change, water quality, scarcity and access, land and soil degradation, deforestation and forest degradation, natural disaster, loss of biodiversity and protected areas, and governance and institutions for environmental and natural resource management. Besides providing an environment outlook, the report tackles the issue of monitoring also from the supply side. It identifies the relevant data and indicator sets available at the global level and country level to capture the global and locally relevant environmental issues with the underlying objective of pinpointing at data gaps. It concludes with a set of recommendations for moving forward on the monitoring agenda. Overall, the threats from climate change caused by Green House Gas (GHG) emissions, biodiversity loss, water pollution and scarcity as well as pressure on land as well as worsening ocean's state and biodiversity have to be taken under close observation in the period over the next 20 years. The environment challenges that the world faces are not trivial and some of them require immediate action. Action, in turn, requires reliable and accurate information. The second part of the report looks at information from the supply side. It identifies the relevant data and indicator sets available at the global level and country level to capture the global and locally relevant environmental issues with the underlying objective of informing and advising decision making and to identify the data gaps.Publication Sino-Singapore Tianjin Eco-City(Washington, DC, 2009-11)China is experiencing rapid and large scale urbanization, and the resulting local and global urban environmental challenges are unprecedented. The Chinese Government has fully recognized these challenges and is aiming to promote more sustainable urbanization in line with the objectives of the eleventh five year plan, which calls for 'building a resource-conserving and environmentally friendly society'. Various initiatives are being pursued to support this objective, both at the national and local levels. At the local level, cities have responded by developing 'eco-cities', which aim to promote a more sustainable urbanization model. More than one hundred eco-city initiatives have been launched in recent years. One such initiative is the Sino-Singapore Tianjin eco-city. The purpose of this report is to review the Sino-Singapore Tianjin Eco-City (SSTEC) project from a comprehensive perspective with a view to achieving the following principal objectives: (i) create a detailed knowledge base on the project; (ii) provide policy advice on key issues, especially those related to the Global Environment Facility (GEF) project; (iii) estimate SSTEC's Greenhouse Gas (GHG) emission reduction potential; and (iv) contextualize the project among the broader ecological urban development initiatives in China. Broadening the World Bank's engagement beyond the GEF was assessed as important given the project's complexity, and its potential to shed light on China's sustainable urban development challengesPublication Algeria : National Environmental Action Plan for Sustainable Development(Washington, DC, 2002-06-28)This staff sector assessment note accompanies the recently completed national environmental action plan for sustainable development (NEAP-SD), which, as an output of the Industrial Pollution Control Project in Algeria, focused on charting a new course for environmental management in the country, based on an objective assessment of past policy, and institutional failures, on a new consensus on the need for mainstreaming the environment into economic management, and sectoral policies, and, on the implementation of a priority action plan, fully integrated with the government three-year economic revival program. The social cost of environmental degradation is already quite significant, and will continue to increase if policies, institutional, and investment measures are not provided. The NEAP-SD serves as a vehicle for building bridges with non-governmental organizations, and donors, and enhance the prospects for improved coordination, as well as helping inform the ongoing process of Country Assistance Strategy (CAS). Recommendations suggest the use of high impact strategic lending, with contributions supporting water and wastewater, urban, and rural development, including natural resource management, incorporating environmental objectives, but focused on fundamental challenges that address public sector efficiency and governance, private sector development, and water management, through partnerships focused on flexible responsiveness, in an approach to integrate the environment into the Bank's instruments, building capacity, and strengthening environmental, and institutional assistance.Publication Strengthening Policy Dialogue on Environment : Learning from Five Years of Country Environmental Analysis(World Bank, Washington, DC, 2008-02)The objective of this paper is to review experience with completed country environmental analysis (CEAs) to improve the effectiveness of CEAs as a strategic analytical tool. Through in-depth analysis of the process, methodologies, costs, and results of completed CEA pilots, the paper assesses how effective CEAs have been in informing and providing strategic guidance to the Bank and client countries on environment-development issues and the extent to which they have facilitated donor coordination. The analysis carried out in this paper also provides feedback on when to prepare a CEA, how to prepare and structure CEAs, and how to use specific methodologies and processes in influencing policy dialogue with partner countries. The findings are of potential interest to World Bank sector managers, country directors, CEA task teams, and environmental staff, but also to development partners who carry out work similar to CEAs. The paper is based on a desk review of completed CEAs and on interviews with task managers and members of CEA teams. Several reports, including a fieldwork-based assessment of the Ghana, India, and Guatemala CEAs commissioned by the Environment Department; a review on Tunisia by the Quality Assurance Group (QAG); and a report commissioned by the Latin America and Caribbean Region, based on in-country assessments of completed CEAs, have also informed this study. A detailed case study analysis of each completed CEA was prepared for this exercise; it substantively informed the review and is available as a background paper. The original CEA concept note proposed that CEAs have three main building blocks: (a) establishment of environment-development priorities linked with growth and poverty reduction, (b) assessment of the environmental implications of sector policies, and (c) institutional analysis. Assessing CEAs against this building block structure, the review highlights several findings.
Users also downloaded
Showing related downloaded files
No results found.