SODBatch A&B SPM Comments co-chair response final ... - ipcc-wg3

Chapter-
Comment
SPM-
1091
SPM-
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SPM-
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Comments
IPCC WGIII Fourth Assessment Report, Second Order Draft
need tight short-term control of emissions is made at line 18, p16 of
Chapter 13, and it's a crucial one to pick up in the SPM so that
taxes are not dismissed unfairly. The point about using thresholds
to reduce revenue is in footnote 4 on p10 of Ch 13, but it needs to
be picked up in the SPM, because without thresholds,
environmentally effective emission taxes are politically impossible
(hence my "will be" above in place of "may be"), so not worth
considering.
(Government of Australia)
27 A 15 12 15 13 "Taxes and charges are economically efficient….to implement". It
may be modified to " Taxes and charges are economically efficient
where market institutions are in place and operate perfectly but
cannot guarantee a particular level of emissions and may be
politically difficult to implement.
(Government of India)
27 A 15 15 15 17 Suggest adding at the end: "Short-term uncertainty in the permit
price, and hence in the cost of emission reductions, is a real cost to
emitters that may reduce political acceptability." Comment: this
picks up the last line on Tradable permits in the TS, and since it's a
key (but not the only) reason why industry lobbies against market
instruments of climate policy, it's important to mention in the SPM.
(Jack Pezzey, Australian National University)
27 A 15 15 18 0 Tradable permits cannot easily be adjusted piecemeal (you cannot
tighten the cap a little bit every now and then as you can increase
taxes). And permits do not combine in a simple and addivie manner
with subsidies on the green alternaives. Once you have a permit
scheme that's it: a subsidy will not change emissions but possibly
affect the price. The formulation "the distribution of allowances has
implications for economic efficiency and competitiveness" is not
ideal. The effects on efficiency (first order) are probably small. It
would be better to say that the distribution of allowances has
implications for political feasibility and income distribution
effects."
(Thomas Sterner, Univ of Göteborg)
Expert Review of Second-Order-Draft
Confidential, Do Not Cite or Quote
Response suggested by cochairs
Action
for
chapter
ACC; add institutional aspects 1061
(13)
See A-1089 1061
(13)
REJ; not consistent with
literature
Considerations
by the writing
team
Page 292 of 348