World Bank2012-03-192012-03-192010-11-17https://hdl.handle.net/10986/2948Drawing on several studies on APEC economies, this report discusses economic policy choices for mitigating and adapting to climate change effects. It highlights that APEC economies will have a central role in both sides of climate change. These economies include some of the largest emitters and also those among the most vulnerable to the impact of climate change. The report suggests that action on climate change will require a wide range of economic policy interventions, including most importantly fiscal policies. These will include setting carbon prices that cost emissions properly, liberalizing and strengthening markets so that prices and costs can be passed- through, offsetting other biases towards capital and emissions intensive economic growth and supporting technology based policies. On the adaptation side, the report emphasizes the importance of fiscal policy and investment choice tools that incorporate the uncertainty surrounding the nature and location of climate change effects. The report discusses how emissions reduction through appropriate climate friendly technologies (CFTs) can be an important complement to more politically sensitive mitigation measures (like carbon pricing). At the same time, CFTs can provide co-benefits like rural electrification. The current status of CFTs in APEC economies - their production, use and trade - are discussed along with technology neutral and technology specific policies and trade and investment policies that can support these technologies. Financing these policy interventions - both technology based and otherwise - will require various measures, including efficient market mechanisms that create incentives to reduce mitigation costs, facilitate financing of mitigation efforts through crediting mechanism and emissions trading, and setting up the necessary institutions. This report also considers policy responses to extreme climate events and their impact on the poor at the community level. Finally, since climate change is inherently of a cross-border, regional and even global nature, there is substantial scope for regional cooperation by APEC economies to address climate change issues. This report concludes with some initial thoughts on some key areas for this cooperation.CC BY 3.0 IGOABSOLUTE EMISSIONSADAPTATION TO CLIMATE CHANGEAIRAIR POLLUTIONAIR TEMPERATUREALLOCATIONALLOWANCEANNUAL COSTAPPROACHATMOSPHEREBIOMASSBUSINESS AS USUAL SCENARIOCAPITAL COSTSCARBONCARBON CAPTURECARBON CONTENTCARBON DIOXIDECARBON INTENSITYCARBON LEAKAGECARBON MARKETCARBON MARKETSCARBON PRICECARBON PRICESCARBON TAXCARBON TECHNOLOGIESCARBONIZATIONCATASTROPHIC IMPACTSCLEAN COALCLEAN COAL TECHNOLOGYCLEAN ENERGYCLIMATECLIMATE CHANGECLIMATE CHANGE IMPACTSCLIMATE CHANGE ISSUESCLIMATE CHANGE MITIGATIONCLIMATE CHANGE POLICIESCLIMATE CHANGE SCENARIOSCLIMATE CHANGESCLIMATE POLICYCLIMATE SYSTEMCLIMATE-CHANGECLIMATE-CHANGE MITIGATIONCOCO2COALCONVERGENCECOST BENEFIT ANALYSISCOST-BENEFITCOST-BENEFIT ANALYSISCOST-BENEFIT FRAMEWORKCOST-EFFECTIVENESS ANALYSISDAMAGESDEFORESTATION RATEDEGREE DAYSDISCOUNT RATEDISTRICT HEATINGDIVERGENCEDOMESTIC SOURCESDRIVERS OF DEFORESTATIONDROUGHTECONOMIC ACTIVITYECONOMIC ANALYSISECONOMIC BENEFITSECONOMIC COSTSECONOMIC GROWTHECONOMIC IMPACTECONOMIC PERSPECTIVEECONOMIC POLICIESELECTRICITYELECTRICITY DISPATCHELECTRICITY GENERATIONELECTRICITY GENERATION TECHNOLOGIESELECTRICITY GROWTHELECTRICITY PRICESELECTRICITY PRODUCTIONELECTRICITY SECTORELECTRICITY SUPPLYEMISSIONEMISSION REDUCTIONEMISSION REDUCTION TARGETSEMISSION REDUCTIONSEMISSIONSEMISSIONS FROM DEFORESTATIONEMISSIONS GROWTHEMISSIONS INTENSITIESEMISSIONS INTENSITYEMISSIONS INVENTORIESEMISSIONS MITIGATIONEMISSIONS REDUCTIONEMISSIONS REDUCTIONSEMISSIONS TARGETSENERGY EFFICIENCYENERGY INTENSITYENERGY PRICEENERGY PRICESENERGY SECURITYENERGY SUBSIDIESENERGY USEENVIRONMENTAL POLICYENVIRONMENTAL PROTECTIONEXPLOSIVEEXTREME CLIMATE EVENTSEXTREME WEATHEREXTREME WEATHER EVENTSFEASIBILITYFERTILIZATIONFINANCIAL CONSTRAINTSFINANCIAL INSTRUMENTSFINANCIAL SECTORFISCAL POLICIESFLOODSFLUORESCENT LAMPFOREIGN DIRECT INVESTMENTFORESTFOREST DEGRADATIONFORESTRYFORESTRY SECTORFOSSIL FUELFOSSIL FUEL EMISSIONSFOSSIL FUEL USEFOSSIL FUELSFRAMEWORK CONVENTION ON CLIMATE CHANGEFUEL PRICESFUELSGASIFICATIONGASOLINE PRICESGHGGHGSGLACIERSGLOBAL CLIMATE CHANGEGLOBAL EMISSIONSGLOBAL EMISSIONS REDUCTIONGLOBAL GREENHOUSE GASGLOBAL WARMINGGREEN HOUSE GASESGREENHOUSEGREENHOUSE GASGREENHOUSE GAS EMISSIONSGREENHOUSE GAS MITIGATIONGREENHOUSE GASESGREENHOUSE-GASGROSS DOMESTIC PRODUCTGROWTH IN DEMANDHEATHUMIDITYHURRICANEHURRICANESIMPORTSINCOMEINCOME HOUSEHOLDSINSURANCEINVESTMENT DECISIONSIPCCKILOWATT-HOURLAND-USE EMISSIONSLANDFILLLANDFILL GASLIQUEFIED PETROLEUM GASLOW-CARBONLOWER COSTSMARGINAL ABATEMENTMARGINAL ABATEMENT COSTMARGINAL COSTMARGINAL UTILITYMARKET DISTORTIONSMARKET FAILURESMETEOROLOGICAL STATIONSMETHANENATIONAL GRIDNATURAL GASNEGATIVE IMPACTSOCEANSOFFSET MITIGATIONOILOIL PRODUCTSPER CAPITA INCOMEPERFORMANCE STANDARDSPETROLEUMPOLICY MAKERSPORTFOLIOPOWER GENERATIONPOWER SECTORPOWER STATIONSPRECAUTIONARY PRINCIPLEPRECIPITATIONPRESENT VALUEPRICE OF COALPRICE POLICIESPRICE SIGNALPRICE VOLATILITYPROBABILITY DISTRIBUTIONPROBABILITY DISTRIBUTIONSR&D FUNDINGRAINFALLREGIONAL GREENHOUSE GAS INITIATIVERELATIVE PRICERENEWABLE ENERGIESRENEWABLE ENERGYRENEWABLE ENERGY SOURCESRENEWABLE TECHNOLOGIESRESPONSE TO CLIMATE CHANGERISKS FROM CLIMATE CHANGERURAL ELECTRIFICATIONSEQUESTRATION TECHNOLOGIESSMALL HYDROPOWERSOLAR POWERSTORM SURGESSTORMSSUBSISTENCE AGRICULTURESUBSTITUTIONSUPPLY SIDESURFACE TEMPERATURETEMPERATURETOTAL EMISSIONSTROPOSPHEREUNCERTAINTIESWEATHER CONDITIONSWINDWIND POWERWorld Bank10.1596/2948