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Metrics for Aggregating the Climate Effect of Different Emissions: A Unifying Framework

Author

Listed:
  • Tol, Richard S. J.

    (Economic and Social Research Institute (ESRI))

  • Berntsen, Terje K.

    (CICERO - Center for International Climate and Environmental Research)

  • O'Neill, Brian C.

    (Institute for the Study of Society and Environment, National Center for Atmospheric Research P.O. Box 3000 Boulder, CO 80307 USA)

  • Fuglestvedt, Jan S.

    (CICERO ? Center for International Climate and Environmental Research ? Oslo, P.O. Box 1129 Blindern, N-0318 Oslo, NORWAY)

  • Shine, Keith P.

    (Department of Meteorology, University of Reading)

  • Balkanski, Yves

    (LSCE/IPSL, Laboratoire CEA-CNRS-UVSQ)

  • Makra, Laszlo

    (SZTE, University of Szeged, Hungary)

Abstract

Multi-gas approaches to climate change policies require a metric establishing ?equivalences? among emissions of various species. Climate scientists and economists have proposed four classes of such metrics and debated their relative merits. We present a unifying framework that clarifies the relationships among them. We show that the Global Warming Potential, used in international law to compare greenhouse gases, is a special case of the Global Damage Potential, assuming (1) a finite time horizon, (2) a zero discount rate, (3) constant atmospheric concentrations, and (4) impacts that are proportional to radiative forcing. We show that the Global Temperature change Potential is a special case of the Global Cost Potential, assuming (1) no induced technological change, and (2) a short-lived capital stock. We also show that the Global Cost Potential is a special case of the Global Damage Potential, assuming (1) zero damages below a threshold and (2) infinite damage after a threshold. The UN Framework Convention on Climate Change uses the Global Warming Potential, a simplified cost-benefit concept, even though the UNFCCC frames climate policy as a cost-effectiveness problem and should therefore use the Global Cost Potential or its simplification, the Global Temperature Potential.

Suggested Citation

  • Tol, Richard S. J. & Berntsen, Terje K. & O'Neill, Brian C. & Fuglestvedt, Jan S. & Shine, Keith P. & Balkanski, Yves & Makra, Laszlo, 2008. "Metrics for Aggregating the Climate Effect of Different Emissions: A Unifying Framework," Papers WP257, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esr:wpaper:wp257
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    References listed on IDEAS

    as
    1. Kandlikar, Milind, 1995. "The relative role of trace gas emissions in greenhouse abatement policies," Energy Policy, Elsevier, vol. 23(10), pages 879-883, October.
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    3. Danny Harvey, L. D., 1993. "A guide to global warming potentials (GWPs)," Energy Policy, Elsevier, vol. 21(1), pages 24-34, January.
    4. John Reilly & Kenneth Richards, 1993. "Climate change damage and the trace gas index issue," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 3(1), pages 41-61, February.
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    6. repec:aen:journl:1993v14-01-a10 is not listed on IDEAS
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    Cited by:

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    2. Scott, Susan & Lyons, Sean & Keane, Claire & McCarthy, Donal & Tol, Richard S. J., 2008. "Fuel Poverty in Ireland: Extent, Affected Groups and Policy Issues," Papers WP262, Economic and Social Research Institute (ESRI).
    3. Remuzgo, Lorena & Trueba, Carmen & Sarabia, José María, 2016. "Evolution of the global inequality in greenhouse gases emissions using multidimensional generalized entropy measures," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 444(C), pages 146-157.
    4. Daniel Johansson, 2012. "Economics- and physical-based metrics for comparing greenhouse gases," Climatic Change, Springer, vol. 110(1), pages 123-141, January.
    5. Lawson Tevi Atator & Kamou Hodabalo & Akpavi Ben Semihinva, 2024. "Methane Emissions from Landfills Sites and Their Contribution to Global Climate Change in the Greater Lomé Area of Togo (West Africa)," Environment and Pollution, Canadian Center of Science and Education, vol. 13(1), pages 1-23, March.
    6. Johansson, Daniel J.A., 2009. "Economics vs. Physical-based Metrics for Relative Greenhouse Gas Valuations," Working Papers in Economics 363, University of Gothenburg, Department of Economics.

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