Jones, BenjaminKeen, MichaelStrand, Jon2012-03-192012-03-192012-01-01https://hdl.handle.net/10986/3241This paper provides a primer on the fiscal implications of climate change, in particular the policies for responding to it. Many of the complicated challenges that arise in limiting climate change (through greenhouse gas emissions mitigation), and in dealing with the effects that remain (through adaptation to climate change impacts), are of a fiscal nature. While mitigation has the potential to raise substantial public revenue (through charges on greenhouse gas emissions), adaptation largely leads to fiscal outlays. Policies may unduly favor public spending (on technological solutions to limit emissions, and on adaptation), over policies that lead to more public revenue being raised (emissions charges). The pervasive uncertainties that surround climate change make the design of proper policy responses even more complex. This applies especially to policies for mitigation of emissions, since agreement on and international enforcement of cooperative abatement policies are exceedingly difficult to achieve, and there is as yet no common view on how to compare nearer-term costs of mitigation to longer-term benefits.CC BY 3.0 IGOABATEMENT COSTSABATEMENT POLICIESABSORPTIONADAPTATION FUNDADAPTATION TO CLIMATE CHANGEADVERSE IMPACTAGGREGATE DEMANDAGGREGATE EMISSIONSAIRALLOCATIONALLOWANCESALUMINUMANNUAL EMISSIONAPPROACHATMOSPHERIC CONCENTRATIONSBALANCEBARREL OF OILBASELINE EMISSIONSBURNING FOSSIL FUELSCAPITAL GAINSCAPSCARBONCARBON CAPTURECARBON CREDITSCARBON EMISSIONSCARBON MARKETCARBON MARKETSCARBON PRICECARBON PRICESCARBON PRICINGCARBON SEQUESTRATIONCARBON TAXCARBON TAX REGIMESCARBON TAXESCATASTROPHIC EVENTSCHEMICALSCLEAN DEVELOPMENTCLEAN DEVELOPMENT MECHANISMCLIMATECLIMATE CHANGECLIMATE CHANGE IMPACTSCLIMATE CHANGESCLIMATE DAMAGECLIMATE DAMAGESCLIMATE EFFECTSCLIMATE OBJECTIVESCLIMATE POLICYCLIMATESCOCO2COALCOAL RESERVESCOASTAL AREASCOASTAL ZONESCONSUMER PRICECONVENTIONAL TECHNOLOGIESCONVERGENCECOST OF ABATEMENTCUTTING EMISSIONSDAMAGESDEFORESTATIONDIESELDIFFUSIONDISCOUNT RATEDISTRIBUTIONAL EFFECTSDOMESTIC HEATINGDROUGHTDROUGHT INSURANCEECONOMIC ANALYSISECONOMIC IMPACTECONOMIC IMPACTSECONOMICS OF CLIMATE CHANGEELASTICITY OF DEMANDELASTICITY OF SUBSTITUTIONELECTRICITYELECTRICITY GENERATIONELECTRICITY PRODUCERSEMISSIONEMISSION REDUCTIONEMISSION RIGHTSEMISSIONS FROM DEFORESTATIONEMISSIONS FROM TRANSPORTATIONEMISSIONS INTENSITYEMISSIONS LIMITSEMISSIONS PRICESEMISSIONS QUOTAEMISSIONS REDUCTIONEMISSIONS REDUCTIONSEMISSIONS RIGHTSEMPLOYMENTENERGY CONSUMPTIONENERGY EFFICIENCYENERGY INTENSIVEENERGY MARKETSENERGY POLICYENERGY PRICEENERGY PRICESENERGY SECURITYENERGY SUBSIDIESENERGY TAXESENERGY USEENVIRONMENTAL DAMAGEENVIRONMENTAL PROTECTIONENVIRONMENTAL PROTECTION AGENCYEXTREME EVENTSEXTREME WEATHEREXTREME WEATHER EVENTSFAT TAILSFEASIBILITYFINANCIAL FLOWSFINANCIAL INFLOWSFISCAL POLICIESFORESTFOREST CARBONFORESTRYFOSSILFOSSIL ENERGYFOSSIL FUELFOSSIL FUEL DEMANDFOSSIL FUEL PRICESFOSSIL FUEL PRODUCERSFOSSIL FUEL USEFOSSIL FUELSFREE ALLOCATIONFUEL DEMANDFUEL EXTRACTIONFUEL PRICEFUEL PRICESFUEL PRICINGFUEL SUPPLYFUEL TYPEFUTURE CONSUMPTIONGAS RESERVESGASOLINEGASOLINE PRICESGASOLINE TAXGASOLINE TAX RATEGENERAL EQUILIBRIUM MODELGHGGHGSGLOBAL CARBON EMISSIONSGLOBAL EMISSIONSGLOBAL WARMINGGREEN TECHNOLOGIESGREENHOUSEGREENHOUSE GASGREENHOUSE GAS EMISSIONSGREENHOUSE GAS EMISSIONS MITIGATIONGREENHOUSE GASESHARMFUL EMISSIONSHIGHER ENERGY PRICESHURRICANEIMPORTSINCOMEINCOME TAX CREDITINSURANCEINSURANCE SCHEMESINTERNATIONAL ENERGY AGENCYINVESTMENT DECISIONSIPCCIRONKEROSENELEVEL OF EMISSIONSLOWER DISCOUNT RATELUMP SUMLUMP SUM TRANSFERSMARGINAL ABATEMENTMARGINAL COSTMARGINAL UTILITYMARKET FAILUREMARKET FAILURESMARKET INTEREST RATEMETALSMITIGATING CLIMATE CHANGEMONETARY FUNDMORAL HAZARDNITROUS OXIDESNUCLEAR POWEROCEANSOILOIL PRODUCERSOIL PRODUCTIONOXIDESPARTICULATESPER CAPITA EMISSIONPERFORMANCE STANDARDPERFORMANCE STANDARDSPERMIT PRICEPETROLEUMPETROLEUM PRODUCTSPHYSICSPLANT GROWTHPOLLUTANTSPRECAUTIONARY PRINCIPLEPRECIPITATIONPRESENT VALUEPRICE OF ENERGY-INTENSIVE GOODSPRICE VOLATILITYPRICES OF ENERGYPRODUCERS OF ENERGYPUBLIC ECONOMICSPUBLIC SPENDINGRADIATIONREDUCTION IN EMISSIONSREGIONAL GREENHOUSE GAS INITIATIVERENEWABLE ENERGYREVENUE RECYCLINGSCENARIOSSEQUESTRATION TECHNOLOGIESSHIPSSTORMSSUBSTITUTIONSUPPLY SIDETAX CREDITSTAX INTERACTIONTAX POLICIESTAX RATESTAX REVENUETAX REVENUESTEMPERATURETIGHTER CAPTOTAL EMISSIONSTRADABLE ALLOWANCESUNCERTAINTIESUTILITIESUTILITY BILLSWASTEWELFARE LOSSESWINDWIND SPEEDSWINDFALL PROFITSWorld Bank10.1596/1813-9450-5956