Emissions Pricing to Stabilize Global Climate

18 Pages Posted: 24 Mar 2012

See all articles by Valentina Bosetti

Valentina Bosetti

Bocconi University; CMCC - Euro Mediterranean Centre for Climate Change

Sergey Paltsev

Massachusetts Institute of Technology (MIT)

John M. Reilly

Massachusetts Institute of Technology (MIT) - Joint Program on the Science and Policy of Global Change

Carlo Carraro

Fondazione Eni Enrico Mattei (FEEM); Ca' Foscari University of Venice; CMCC - Euro Mediterranean Centre for Climate Change (Climate Policy Division); IPCC; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); Centre for European Policy Studies, Brussels; Green Growth Knowledge Platform; International Center for Climate Governance

Multiple version iconThere are 2 versions of this paper

Date Written: November 1, 2011

Abstract

In the absence of significant greenhouse gas (GHG) mitigation, many analysts project that atmospheric concentrations of species identified for control in the Kyoto protocol could exceed 1000 ppm (carbon-dioxide-equivalent) by 2100 from the current levels of about 435 ppm. This could lead to global average temperature increases of between 2.5 and 6◦ C by the end of the century. There are risks of even greater warming given that underlying uncertainties in emissions projections and climate response are substantial. Stabilization of GHG concentrations that would have a reasonable chance of meeting temperature targets identified in international negotiations would require significant reductions in GHG emissions below "business-as-usual" levels, and indeed from present emissions levels. Nearly universal participation of countries is required, and the needed investments in efficiency and alternative energy sources would entail significant costs. Resolving how these additional costs might be shared among countries is critical to facilitating a wide participation of large-emitting countries in a climate stabilization policy. The 2◦C target is very ambitious given current atmospheric concentrations and inertia in the energy and climate system. The Copenhagen pledges for 2020 still keep the 2◦C target within a reach, but very aggressive actions would be needed immediately after that.

Keywords: Emission pricing, Climate Sabilization

JEL Classification: Q54, Q58

Suggested Citation

Bosetti, Valentina and Paltsev, Sergey and Reilly, John M. and Carraro, Carlo, Emissions Pricing to Stabilize Global Climate (November 1, 2011). CMCC Research Paper No. 113. Available at SSRN: https://ssrn.com/abstract=2027881 or http://dx.doi.org/10.2139/ssrn.2027881

Valentina Bosetti (Contact Author)

Bocconi University

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CMCC - Euro Mediterranean Centre for Climate Change

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Sergey Paltsev

Massachusetts Institute of Technology (MIT) ( email )

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John M. Reilly

Massachusetts Institute of Technology (MIT) - Joint Program on the Science and Policy of Global Change ( email )

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Carlo Carraro

Fondazione Eni Enrico Mattei (FEEM) ( email )

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