Centre for Climate Change Economics and Policy

Lead Research Organisation: London School of Economics & Pol Sci
Department Name: Geography and Environment

Abstract

Human-induced climate change could have enormous impacts on economies and societies if we persist with 'business as usual'. This is the consensus view of climate scientists and one with which economists are increasingly finding agreement (eg The Stern Review). It is much less certain, however, that our economic, social and political systems can respond to the challenge. Will public, private and civic actors take action to create low-carbon economies? What emission reduction strategies will be efficient, equitable and acceptable? How much should we invest, and when, on measures to reduce vulnerability to climate change? Who will bear the costs and enjoy the benefits?

Publications


10 25 50
Acharya, Shankar; Mohan, Rakesh (2010) India's Economy: Performances and Challenges
Adger W (2011) Resilience implications of policy responses to climate change in Wiley Interdisciplinary Reviews: Climate Change
Adger, W. Neil; Jordan, Andrew (2009) Governing Sustainability
Adger, W. Neil; Lorenzoni, Irene; O'Brien, Karen L. (2009) Adapting to Climate Change: Thresholds, Values, Governance
Afionis S (2012) EU climate leadership under test in Nature Climate Change
Afionis S (2012) European Union leadership in biofuels regulation: Europe as a normative power? in Journal of Cleaner Production
Alex Bowen (Author) (2011) Low-carbon development for the least developed countries in World economics : the journal of current economic analysis and policy
Alex Bowen (Co-Author) (2011) Low-carbon development for the least developed countries in World economics
 
Description ABC interview on adaptation policy 
Form Of Engagement Activity A press release, press conference or response to a media enquiry/interview
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Media (as a channel to the public)
Results and Impact As part of the University of Melbourne's 'Victorian climate change adaptation week', Dr Samuel Fankhauser, of the Grantham Research Institute at the London School of Economics, was interviewed by the Australian Broadcasting Corporation regarding adaptation policy.
Year(s) Of Engagement Activity 2009
 
Description Adaptation economics 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Primary Audience
Results and Impact Key note lecture at the Grantham Institute, Imperial College, economics day.
Year(s) Of Engagement Activity 2010
 
Description Adaptation responses and social justice issues 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact ESRC/Joseph Rowntree Foundation/Local Government Association Public Policy Seminar: 'How will climate change affect people in the UK and how can we best develop an equitable response?'
Year(s) Of Engagement Activity
URL http://www.esrc.ac.uk/ESRCInfoCentre/Images/Tompkins-ESRC-JRF-LGA-Nov09-v2_tcm6-34995.pdf
 
Description Andrew Gouldson on economics 
Form Of Engagement Activity A press release, press conference or response to a media enquiry/interview
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Media (as a channel to the public)
Results and Impact Podcast on who foots the bill for climate change. Originally filmed for The Guardian website, now available on ESRC Youtube
Year(s) Of Engagement Activity
 
Description Carbon taxes : good for the environment, not bad for the economy 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact In a recent study researchers from the London School of Economics (LSE) show that carbon taxes can reduce pollution without harming the economy.

In 2001 the U.K. government introduced a tax on various energy fuels for industry - the Climate Change Levy (CCL). A research team from the Centre for Economic Performance (CEP) at the LSE, led by Ralf Martin, has conducted an in depth evaluation of the effect of this policy on individual firms using a representative sample of the UK economy which includes detailed data on more than 10.000 enterprises.

They found that the Climate Change Levy - which on average corresponds to a £20 carbon tax per ton - has had a strong impact on power usage by companies and reduced electricity consumption for the average manufacturing firm by 10 to 20 percent. The economists also examined whether the levy had had any adverse impacts on economic performance of companies in areas such as employment or productivity. They did not find any evidence for this.

Ralf Martin - who is part of the AGF funded 'sustainable growth in europe' research team - summarises the outcome of the research as "good for the planet and not bad for the economy". He goes even further, suggesting that an increase in carbon taxes and a simultaneous reduction of taxes on wages and employment could be the ideal policy measure in the current crisis, as it would secure existing jobs without leading to more government borrowing.
Year(s) Of Engagement Activity
URL http://www.agf.org.uk/programme/events/2009/index.html
 
Description Carbon taxes, path dependency and directed technical change : evidence from the auto industry 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact We exploit new _rm-level panel data on "dirty" (internal combustion engine) and "clean"

(e.g. electric and hybrid) patents in the automobile industry across 80 countries. We show

that _rms tend to innovate more in clean technologies when they face higher tax-inclusive fuel

prices and higher R&D subsidies to clean innovation. Furthermore, there is path dependence

in the type of innovation both from countrywide knowledge spillovers and from the _rm's

own history of innovation. This implies that if economies and _rms that inherit a history of

dirty innovation are more likely to become "locked in" to more dirty innovation in the future.

Consequently, the results reinforce the argument for early policy intervention against climate

change to induce more directed clean technical change.
Year(s) Of Engagement Activity
 
Description Challenges in the extraction of decision relevant information from multi-decadal ensembles of global circulation models 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact Presented at the climate change workshop, a workshop on the role of mathematics and statistics in the study of climate change.
Year(s) Of Engagement Activity
URL http://www.samsi.info/200910/spatial/climate/Stainforth_SAMSI_d1_04.ppt
 
Description Climate change : India 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact A two day workshop which continues work established in India during 2008.
Year(s) Of Engagement Activity
URL http://www.lse.ac.uk/collections/asiaResearchCentre/
 
Description Climate change and the economy 
Form Of Engagement Activity A press release, press conference or response to a media enquiry/interview
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Media (as a channel to the public)
Results and Impact BBC Today
Year(s) Of Engagement Activity
 
Description Conceptual and methodological challenges in analysing local governance, urbanisation and climate change 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact Small working group to review the progress of an ESRC funded project
Year(s) Of Engagement Activity
 
Description Copenhagen : hope melting away? (2nd part) 
Form Of Engagement Activity A press release, press conference or response to a media enquiry/interview
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Media (as a channel to the public)
Results and Impact Programme featuring a debate about the Climate Change Summit and asking, as the summit nears its end without a real agreement in reach, has Copenhagen been a failure? Dimitri Zenghelis, Chief Economist, Cisco Climate Change Practice and Chatham House Associate Fellow for the Energy, Environment and Development Programme, participates in the debate.
Year(s) Of Engagement Activity 2009
 
Description Difficulties in deriving forecast probabilities from general circulation models and efforts to estimate uncertainty in future climate projections 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact Discusses proposed operational alternatives to the assumption of stationarity in hydrologic frequency analysis that can be used in a transitional period.
Year(s) Of Engagement Activity
URL http://www.cwi.colostate.edu/NonstationarityWorkshop/SpeakerInfo/Stainforth_Abstract.pdf
 
Description Economic downturn and climate change policy 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Primary Audience
Results and Impact An invited talk to the Committee on the Environment, Agriculture and Local and Regional Affairs of the Council of Europe
Year(s) Of Engagement Activity 2010
 
Description Energy transition as a global challenge : the case of renewable energy 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Primary Audience
Results and Impact Global Governance School for highly qualified young professionals for eight anchor countries.
Year(s) Of Engagement Activity 2010
URL http://gc21.inwent.org/ibt/en/ilt/ibt/programme/mgg/xhtml/index.sxhtml
 
Description Future of food 
Form Of Engagement Activity A press release, press conference or response to a media enquiry/interview
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Media (as a channel to the public)
Results and Impact In this three-part series, George Alagiah travels the world to reveal a growing global food crisis that could affect the planet in the years ahead. Dr Evan Fraser is featured in all three one-hour programmes.
Year(s) Of Engagement Activity 2009
 
Description Getting to four degrees 
Form Of Engagement Activity A press release, press conference or response to a media enquiry/interview
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Media (as a channel to the public)
Results and Impact Dr Tompkins was an 'expert' contributor to a BBC Radio 4 afternoon play on climate change.

'What if we can't limit global warming to two degrees? What if it reaches four degrees - or more? Three real-life climate change experts spin one average family into the future, to look at life on a warmer planet.
Year(s) Of Engagement Activity 2009
 
Description Global food security 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact Invited speaker at a research seminar at the University of Guelph
Year(s) Of Engagement Activity
 
Description Gordon Brown's speech on Copenhagen to the major economies forum 
Form Of Engagement Activity A press release, press conference or response to a media enquiry/interview
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Media (as a channel to the public)
Results and Impact Professor Gouldson was interviewed on Radio 5 Live regarding Gordon Brown's speech on Copenhagen
Year(s) Of Engagement Activity 2009
 
Description Green fiscal stimulus packages 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact BIEE seminar on sustainable energy - the next crisis
Year(s) Of Engagement Activity
URL http://www.biee.org/downloads.php
 
Description India's role in international action on climate change 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact ESRC-ICSSR workshop : environmental sustainability and climate change
Year(s) Of Engagement Activity
URL http://www.lse.ac.uk/collections/IndiaObservatory/wordDocuments/ESRCWorkshopPgmFinal.doc
 
Description Interpreting models in a climate change context : summary of the day 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact A workshop to engage the public and private sectors in discussion of uncertainty in model interpretation relating to climate change.
Year(s) Of Engagement Activity
URL http://www.cccep.ac.uk/Events/MunichReSymposium1.aspx
 
Description Low carbon prosperity 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Primary Audience
Results and Impact Participation at the Globe Legislators Forum on climate change in Copenhagen; two presentations on low carbon prosperity were given to an audience of approximately 100 legislators from G20 countries
Year(s) Of Engagement Activity 2010
 
Description New, emerging and neglected science questions in the RESCUE remit - a social science perspective 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Primary Audience
Results and Impact The two day event was entitled; Vulnerable or Adaptable? Understanding Social and Economic Responses to Global Environmental Change and was the European Science Foundation launch of the RESCUE initiative
Year(s) Of Engagement Activity 2010
URL http://www.esf.org/activities/forward-looks/life-earth-and-environmental-sciences-lesc/current-forwa...
 
Description Recession and the green economy 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact This was the third of the ESRC's 'global financial crisis' lecture series and focused on the opportunities offered by the green economy in the current economic downturn.
Year(s) Of Engagement Activity
URL http://www.esrc.ac.uk/ESRCInfoCentre/PO/briefings/Recession_and_the_Green_Economy.aspx
 
Description Sir Paul chews over the facts about meat and saving the planet 
Form Of Engagement Activity A magazine, newsletter or online publication
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Media (as a channel to the public)
Results and Impact Article about Sir Paul McCartney launching a campaign encouraging people to give up meat on Mondays. Dr Evan Fraser, a senior lecturer in sustainable development at Leeds University, is interviewed about vegetarianism not always being the greenest option and suggests that meat reared in Yorkshire is better for the environment than soya beans that come from the Brazilian rainforests.

Yorkshire Post
Year(s) Of Engagement Activity 2010
URL http://www.yorkshirepost.co.uk/features/Sir-Paul-chews-over-the.5368936.jp
 
Description Social justice and a new deal on climate change in Copenhagen 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact Professor Paavola was invited to give a seminar as part of the School of Development (DEV) Seminar Series, at the University of East Anglia
Year(s) Of Engagement Activity
URL https://www.uea.ac.uk/dev/research/seminars/seminarsautumn2009
 
Description Stimulating investment in energy materials and technologies to combat climate change 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Primary Audience
Results and Impact Discussion meeting, with invited speakers
Year(s) Of Engagement Activity 2010
URL http://royalsociety.org/Event.aspx?id=1901
 
Description The CCC October report 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Primary Audience
Results and Impact Presentation of the Climate Change Committee October report to Welsh stakeholders and participation in a meeting of the Welsh Climate Change Commission
Year(s) Of Engagement Activity 2010
 
Description The economics of avoided deforestation 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Primary Audience
Results and Impact Presentation of Deforestation (REDD) at the GLOBE Pittsburg meeting
Year(s) Of Engagement Activity 2010
 
Description The effects of carbon prices on business : a conservative estimate 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact This study exploits tries to determine the impact of carbon taxes on energy usage and other performance indicators of manufacturing firms in the UK using a unique identification strategy.



In 2001, the UK government introduced the so-called Climate Change Levy (CCL) a tax on energy fuels for businesses. To examine the impact of the tax, we exploit that some busineses - those entering a so called climate chane agreement (CCA) - received an 80 per cent discount on the tax.



This raises two issues. Firstly, CCA firms had to comply with firm-specific energy consumption targets. Comparing CCA with non-CCA firms will therefore provide a lower bound for the impact of an 80 per cent tax difference. Secondly, participation in the CCA is voluntary which leads to a selection endogeneity. The study addresses this by exploiting certain exogeneous variations in eligibility which we use as the basis for an instrument.



The preliminary findings are that the climate change levy had a significant impact on energy usage of firms but not on other performance variables such as output or employment. The latter result is consistent with the hypothesis that the CCL scheme did not have negative effects on the international competitiveness of businesses in the UK.
Year(s) Of Engagement Activity
URL http://www.psi.org.uk/events/event.asp?event_id=140
 
Description The interpretation and design of ensembles of complex models for climate change decision making 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact A current debate in the climate modelling community relates to the question of how to balance computational resources between higher resolution models, more complex models, and larger ensembles. While efforts to increase resolution and complexity still takes the lion share of resources there are nevertheless growing numbers of ensembles of climate change simulations, including the CMIP3 ensemble for the IPCC, the climateprediction.net project and others. As such ensembles proliferate it becomes increasingly important to question a) how to best design such ensembles, and b) how they should be interpreted by and for decision and policy makers. These questions will be addressed in this talk in the context of a categorisation of uncertainties in this extrapolatory problem.
Year(s) Of Engagement Activity
URL http://www.mpipks-dresden.mpg.de/~dswc09/
 
Description The socio-economic determinants of drought vulnerability 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact Invited speaker at a research seminar at the University of London
Year(s) Of Engagement Activity
 
Description The tragedy of the commons and doubly symmetric games 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact Presentation at workshop titled 'The role of social norms in building a low carbon society'.
Year(s) Of Engagement Activity
URL http://www2.warwick.ac.uk/fac/cross_fac/low_carbon/research/socialnorms/
 
Description Towards climate resilient, low carbon cities 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Primary Audience
Results and Impact Presentation to leaders of 8 local authorities in the Leeds area
Year(s) Of Engagement Activity