Decarbonising through climate legislation, The effects of five instruments available to governments
(2022) NEKP01 20221Department of Economics
- Abstract
- The main goal of the Paris agreement is to hold global warming below 2 degrees Celsius. A goal which requires a rapid peak and decline of global emissions. With the adoption of the Paris agreement, countries submitted Nationally Determined Contributions making national climate legislation a key tool for how to reach the goal. While the response so far has failed to reduce global emissions, climate legislation can be helpful in lowering national emissions. This study uses panel data to study the effectiveness of five different types of climate legislation in reducing CO2-emissions. With data covering 141 countries between 1996–2018, a two-way fixed effects model is used to determine a short and long-term effect of implementing a climate... (More)
- The main goal of the Paris agreement is to hold global warming below 2 degrees Celsius. A goal which requires a rapid peak and decline of global emissions. With the adoption of the Paris agreement, countries submitted Nationally Determined Contributions making national climate legislation a key tool for how to reach the goal. While the response so far has failed to reduce global emissions, climate legislation can be helpful in lowering national emissions. This study uses panel data to study the effectiveness of five different types of climate legislation in reducing CO2-emissions. With data covering 141 countries between 1996–2018, a two-way fixed effects model is used to determine a short and long-term effect of implementing a climate law. Laws relying on economic tools such as taxes and subsidies show the greatest effects in advanced economies. CO2 emissions per GDP are reduced by 1.47% within the first three years and by 3.55% when the law has been implemented by four years or more. The rest of the world has been more successful with regulation tools, such as standards and obligations. These laws are associated with short term reductions of 2.94% and long-term reductions 3.46%, worldwide. The three remaining types of laws rely on direct investments, information, or governance tools. None of which show a significant negative effect on emissions. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9085765
- author
- Lindholm, Lucas LU
- supervisor
- organization
- course
- NEKP01 20221
- year
- 2022
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Climate legislation, CO2 emissions, Tax incentives, Command and control regulation, Public good investments
- language
- English
- id
- 9085765
- date added to LUP
- 2022-10-10 11:28:52
- date last changed
- 2022-10-10 11:28:52
@misc{9085765,
abstract = {{The main goal of the Paris agreement is to hold global warming below 2 degrees Celsius. A goal which requires a rapid peak and decline of global emissions. With the adoption of the Paris agreement, countries submitted Nationally Determined Contributions making national climate legislation a key tool for how to reach the goal. While the response so far has failed to reduce global emissions, climate legislation can be helpful in lowering national emissions. This study uses panel data to study the effectiveness of five different types of climate legislation in reducing CO2-emissions. With data covering 141 countries between 1996–2018, a two-way fixed effects model is used to determine a short and long-term effect of implementing a climate law. Laws relying on economic tools such as taxes and subsidies show the greatest effects in advanced economies. CO2 emissions per GDP are reduced by 1.47% within the first three years and by 3.55% when the law has been implemented by four years or more. The rest of the world has been more successful with regulation tools, such as standards and obligations. These laws are associated with short term reductions of 2.94% and long-term reductions 3.46%, worldwide. The three remaining types of laws rely on direct investments, information, or governance tools. None of which show a significant negative effect on emissions.}},
author = {{Lindholm, Lucas}},
language = {{eng}},
note = {{Student Paper}},
title = {{Decarbonising through climate legislation, The effects of five instruments available to governments}},
year = {{2022}},
}