Ross McKitrick on WUWT-TV Nov 15th 2012 economics of emissions

Trading Pollution: How Pollution Permits Paradoxically Reduce Emissions

Economics of California’s AB32 Global Warming Regulation

Matthew E. Kahn on California Voter Support for Low Carbon Policies

Understanding the Climate Debate: The Lost Middle Ground

Climate economics: Optimal climate policy

When is international action on global warming justified?

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Source: Michael Brune/Sierra Club’s Non Sequitur (Letter to Koch assumes a market problem, a government solution) – Master Resource.

When countries *do* tax carbon, it’s usually $15/ton or less @GreenCatherine @RusselNorman @Greenpeacenz

Source:  "Carbon pricing under binding political constraints" Jesse D. Jenkins and Valerie J. Karplus  (2 April 2016 ).

Long-term costs of cutting emissions grow hazy

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#Morganfoundation discovers that #Ukraine is a dodgy place to buy credence goods

Morgan Foundation yesterday put out a report pointing out that many of the carbon credits purchased from the Ukraine under the carbon trading scheme are fraudulent.

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That comes with no surprise to anyone vaguely familiar with business conditions and the level of official corruption in the former Soviet Union. Russia is a more honest place to do business.

 

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Source: Doug Bowman on Experience Effects on Brand Choice :: The Institute of Brand Science at Emory University.

Carbon traders who buy from the Ukraine are not buying an inspection good. An inspection good is a good whose quality you can ascertain before purchase.

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They are not buying an experience good. An experience good is a good whose quality is ascertained after purchase in the course of consumption.

Source: Russia, Ukraine dodgy carbon offsets cost the climate – study | Climate Home – climate change news.

What these carbon traders in New Zealand are doing is buying credence goods from the Ukraine. The credence goods are the carbon credits, which the Morgan Foundation and others have found often to be fraudulent.

A credence good is a good whose value is difficult or impossible for the consumer to ascertain. A classic example of a credence good is motor vehicle repairs.

You must trust the seller and their advice as to how much you need to buy of a credence good. Many forms of medical treatment also require you to trust the seller as to how much you need.

Carbon credits are such a credence good. You know there is corruption in the Ukraine and many other countries that supply them. You may never know at any reasonable cost whether the specific carbon credits you buy were legitimate.

The reason why carbon credits are purchased from such an unreliable source is expressive voting. As is common with expressive politics, what matters is whether the voters cheer or boo the policy. The fact whether it works or not does not matter too much.

The Greens are upset about this corruption in carbon trading. They did not mention the corruption in international carbon trading and climate aid when they welcomed the recent Paris treaty on global warming but that is for another day.

https://twitter.com/kadhimshubber/status/721831502372302849

Co-ordinated international action on global warming is rather pointless if some of the key countries with carbon emission caps are corrupt, which they are.

As Geoff Brennan has argued, CO2 reduction actions will be limited to modest unilateral reductions of a largely token character. There are many expressive voting concerns that politicians must balance to stay in office and the environment is but one of these.

Once climate change policies start to actually become costly to swinging voters, expressive voting support for these policies will fall away, and it has.

Networked Carbon Markets

Source:  World Bank Networked Carbon Markets.

One way to stem that fading support is to buy carbon credits on the cheap and there is plenty of disreputable suppliers of cheap carbon credits. Buying dodgy carbon credits as a way of doing something on global warming without it costing more than expressive voters will pay.

One of the predictions of the adverse selection literature is that if consumers cannot differentiate good and bad goods from each other, such as with used cars, the market will contract sharply or even collapse because buyers cannot trust what is on offer. This risk of adverse selection undermining a market applies with clarity to carbon trading.

Source: How Can Your Vote Shape a Low Carbon Future? It Starts with Carbon Pricing.

Why do @NZGreens want NZ to lead the world by example on a carbon tax, but not unilateral free trade?

The opportunity cost of expressive politics: fossil fuels disinvestment versus actually doing something that might help

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via Divestment and Symbolic Action on Fossil Fuels | The Energy Collective.

The numbers behind any shift to a lower carbon economy simply don’t add up

It is not smart to subsidise electric cars

Europe’s Climate Fail

Europe’s rate of decarbonization was essentially identical before and after the ETS was introduced. If the program has effects, decarbonization has not been detectable beyond historical business-as-usual rates.

HT: http://thebreakthrough.org/index.php/voices/roger-pielke-jr/europes-climate-fail

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