Unit 4 - Policy Issues, Ethics and Economics

Question 0

In what year was UNFCC started and why (3x)?

Answer 0

United Nations Framework Convention on Climate Change
1991
signed by 166 nations
NO specific national or international targets set on GHG reductions

1. gather/share information concerning GHG emissions, national policies and best practice
2. form and implement strategies for mitigation
3. form and implement strategies for an cooperate in adaptation measures.

Question 1

In what year was IPCC started, by whom and why?

Answer 1

IPCC = intergovernmental panel on climate change
1988 - by WMO & UNEP

NOT RESEARCH
Collect and report on scientific research on the process and extent & impact of CC + on appropriate international response to this.

Question 2

What are COP’s?

Answer 2

Conference of Parties are meetings

• developments and approaches are negotiated and agreed
• intermediary negotiations, working parties and studies to inform and facilitate the process

Question 3

the 4 key points or principles of the UNFCCC

Answer 3

1. stabalising the climate to prevent “dangerous anthropogenic interference with the climate system”, a timeframe to let natural systems adapt, without damage to food systems/economic development.
2. monitor and limit countries GHG emissions - country limits
3. focus on development countries - especially the vulnerable
4. precautionary measures to respond to CC threats (even though many scientific uncertainties)

Question 4

Kyoto Protocol

Answer 4

COP3 in 1997 in Kyoto for the period 2008-2012

1. Emission trading scheme (ETS) for international trade
2. Clean Development Mechanism (CDM)
3. Joint Implementation Mechanism (JI)

Question 5

What is the concept of “loss and damage”?

Answer 5

an agreement that in principle richer nations could be financially responsible to other nations for their failure to reduce carbon emissions.

Doha, 2012 and then in 2013 the Warsaw international mechanism for loss and damage.

Question 6

What happened between Bali Action plan (2007) and Copenhagen 2009 that strengthened and constrained consensus reach?

Answer 6

Strengthen:

1. improved scientific understanding
2. changes in political administration
3. legislation/pronouncements from individual countries

Constrains:

1. Economic recession
2. Political change of heart on commitments under a new agreement and the balance between liabilities & responsibilities between developed and developing nations.
3. Domestic political systems and their lack of support (especially China and USA)
4. difficult to agree on details

Question 7

The tradegy of the commons results in:

Answer 7

(Hardin, 1968)

1. Gov not wanting to bear the costs of GHG emissions reductions
2. some benefit from competitive advantages while others suffer disadvantages.
3. big economic & social costs for rich countries
4. limited opportunities for economic growth and increased standard of living for poor countries
5. investment costs and capital to adapt/cope

Question 8

4 reasons why Kyoto Protocol took 8 years from agreed to enforced

Answer 8

1) negotiating the details (different views on cause of CC, effective responses, national liabilities, vested interests)
2) details were only agreed on in Marrakesh 2001
3) USA + Australia withdrew, reducing the political momentum
4) treshold of number of ratifying countries (55 Annex 1) + % of GHG emissions of those countries was not reached until 2005.

Question 9

What is ethics?

Answer 9

the study and development of principles, standards and rules determining what is right or wrong in particular situation.

Question 10

Why is ethics important in CC?

Answer 10

1) actions of some seriously harm the interests of others

2) debates are not so much about economics/politics but more about differences in ethical positions or understanding.

Question 11

The 5 different ethical difficulties in CC
(based on Gardiner, 2006 and Garvey, 2008)

“The perfect storm”

Answer 11

1. Seperate cause and effect (Spatial, Intergenerational)
2. Integral causes
3. Dispersed, invisible and uncertain causes
4. Dispersed, invisible and uncertain effects
5. Multiple actors and sets of actors (different values, ethical analysis global concencus)

Question 12

What is moral corruption?

Answer 12

(Gardiner, 2006)

policians, normal people, ethical thinkers that think to justify inaction or insufficient action on cc

Question 13

Brief summary of (Gardiner, 2006)’s perfect storms

Answer 13

CC is thee perfect moral storm because it involves the convergence of a number of factors that threaten our ability to behave ethically.

1. The Global Storm
   - dispersion of cause and effect
   - fragmentation of agency
   - institutional inadequacy
2. The Intergenerational Storm
3. The Theoretical Storm

Question 14

The CBA Compares…

Answer 14

1. the effect of CC as anticipated with BAU + adaptation required
2. mitigation costs + anticipated (reduced?) effects of CC + (reduced) adaptation required.

Question 15

the 3 difficulties if CBA for CC

Answer 15

1. uncertainty of CC and policy effects
2. valuation of costs and benefits of those outcomes
3. the choice in discount rate

Question 16

valuation of CC and policy effects is difficult because:

Answer 16

1. uncertainty about how climate prices will change in the future
2. how far market prices reflect real values
3. different attitudes to risk

Question 17

Discount rate

Answer 17

1. descriptive approach - compounding interest
2. prescriptive (normative):
   - economic growth leads to consumption discount rate
   - pure rate of time preference

Present Value:
PV = A/(1+r)t

high discount rate = assumed high rates of income & welfare growth

Question 19

Choice in discount rate highlights 3 major issues for the economica analysis

Answer 19

1. choice of methods / values has a major effect on the outcome of the analysis
2. choice contributes yet more uncertainty to the analysis
3. ethical & ideological dimensions underpin choices of methods/values

Question 20

List five sources of uncertainty to be addressed when undertaking a CBA of climate change.

Answer 20

1. Climate change effects, their:
   - Identification
   - Timescales
   - Costs
   - Required adaptive responses
2. The nature and impact of mitigation actions and their effect on the above climate change effects
3. The appropriate choice of discount rate
4. Opportunity cost of capital
5. Future utility compared with current generation utility

Question 21

7 economic branches/considerations can give insights in CC CBA’s

Answer 21

1. Environmental Economics
2. Institutional Economics
3. Transaction cost Economics
4. Economics of innovation and technology change
5. Information Economics
6. Taxation and regulation
7. Political economy

Question 22

What are the ‘social cost of carbon’?

Answer 22

estimated cost (expressed in monetary value) of all damage done to natural, physical, human, social, and financial capital and consumption affecting existing and future societies, allowing for expected future damage, due to climate change arising from anthropogenic sources of carbon dioxide equivalent [GHGs]

Question 23

The disaster, progress and success of the Copenhagen Accord

Answer 23

Disaster 1: no binding targets
Disaster 2: non- binding ER pledges not sufficient
Progress 1: 192 nations
Progress 2: deforestation
Progress 3: outline/political map for post-Kyoto
Success 1: endorsed twin track
Success 2: funding committments
Success 3: parties agreed that any ER targets need to be legally binding.

Question 24

UNFCCC challenges when formulating agreements/policies

Answer 24

1. disagreement on the cause of CC and therefore the actions
2. uncertainty on nature, degree, effects of CC
3. differentiation in local impacts (different incentives to deal with it)
4. defferent political, ideological and economical theories
5. highly heterogeneous and diverse interest groups
6. different degrees of political will and capability to negotiate / implement
7. nature of existing political and diplomatic relationships