In the past few years, unstable and extreme weather patterns are increasingly occurring as phenomena of climate change, and the link to greenhouse gas (GHG) emissions is scientifically accepted. From an economic point of view, extreme weather patterns are causing major damage to health, property, and business.In this chapter, following an economic analysis of law (EAL) approach, the issue of the comparison between the alternative environmental economic policies is analyzed starting from the consideration that the emissions of GHGs originate market failures: the environment appears as a “public good” that may not be appropriated and has no market price; the damage to the environment is a case of “externality,” where it is fully or partly a social cost that is not internalized into the accounts of the parties causing it. In the EAL literature, an environmental policy instrument has been seen as it may play a role in correcting malfunction and subsequent inefficiencies.In the first part of the chapter, we intend to revise the traditional analysis of the choice of environmental policies. The following part deals with the comparison between tax and tradable permit systems. Then the role that can be played by the insurance sector is considered. The different policy instruments are considered in the framework of climate as an economic global public good. And, finally, some conclusive remarks are presented in relation to the COP 21 conference in Paris in terms of the future policies against GHG effects.
The Choice between Economic Policies to Face Greenhouse Consequences
PORRINI, Donatella
2016-01-01
Abstract
In the past few years, unstable and extreme weather patterns are increasingly occurring as phenomena of climate change, and the link to greenhouse gas (GHG) emissions is scientifically accepted. From an economic point of view, extreme weather patterns are causing major damage to health, property, and business.In this chapter, following an economic analysis of law (EAL) approach, the issue of the comparison between the alternative environmental economic policies is analyzed starting from the consideration that the emissions of GHGs originate market failures: the environment appears as a “public good” that may not be appropriated and has no market price; the damage to the environment is a case of “externality,” where it is fully or partly a social cost that is not internalized into the accounts of the parties causing it. In the EAL literature, an environmental policy instrument has been seen as it may play a role in correcting malfunction and subsequent inefficiencies.In the first part of the chapter, we intend to revise the traditional analysis of the choice of environmental policies. The following part deals with the comparison between tax and tradable permit systems. Then the role that can be played by the insurance sector is considered. The different policy instruments are considered in the framework of climate as an economic global public good. And, finally, some conclusive remarks are presented in relation to the COP 21 conference in Paris in terms of the future policies against GHG effects.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
