Alleviating inequality in climate policy costs: an integrated perspective on mitigation, damage and adaptation

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Alleviating inequality in climate policy costs: an integrated perspective on mitigation, damage and adaptation
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Equity considerations play an important role in international climate negotiations. While policy analysis has often focused on equity as it relates to mitigation costs, there are large regional differences in adaptation costs and the level of residual damage. This paper illustrates the relevance of including adaptation and residual damage in equity considerations by determining how the allocation of emission allowances would change to counteract regional differences in total climate costs, defined as the costs of mitigation, adaptation, and residual damage. We compare emission levels resulting from a global carbon tax with two allocations of emission allowances under a global cap-and-trade system: one equating mitigation costs and one equating total climate costs as share of GDP. To account for uncertainties in both mitigation and adaptation, we use a model-comparison approach employing two alternative modeling frameworks with different damage, adaptation cost, and mitigation cost estimates, and look at two different climate goals. Despite the identified model uncertainties, we derive unambiguous results on the change in emission allowance allocation that could lessen the unequal distribution of adaptation costs and residual damages through the financial transfers associated with emission trading.
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fairness has always played an important role in conversations and policymakers care about the regional distribution of cut costs for the 1st
time the Paris agreement has included adaptation as a long-term global goal together with the implications but if
you look at the quantitative analysis of the 4 Chilean schemes that have been conducted so far most of them focus on mitigation here in this study we take a broader view on equity and look at the regional
disparities in total climate cost including damages and adaptation by
key question is whether carbon markets and international emission trading can compensate for the even distribution of mitigation adaptation and average cost to answer this question we have
got a regional sectorial data on governing factor and adaptation cost and we use them to represent damages and adaptation into integrated assessment models commonly used for mitigation analyzes they using a
model comparison approach would make it possible to understand also how uncertainty on different can of cost component can influence policy conclusions the 1st
important resided we obtain concerns the regional pattern of total can cost under different policy can get we find that the distribution of damages and adaptation costs remains an equality the 2 DVDs the decision policy this indicates that climate impact can amplified
inequalities and already created by mitigation policies we then show how emission trading can alleviate these regional disparities if we're looking at more attention parents to region with high impact adaptation cost such as India Africa Southeast Asia Indonesia the financial flows associated with carbon trading would compensate those costs
compared to this scheme that equalizes only the mitigation cost of it to DEG policy for example the
additional financial transferred needed to compensate also impact in addition cost would be in the order of 500 billion dollars in 2015 this
study provides only a 1st assessment of how a more equitable climate policies would look like when considering damages and adaptation certainly more research on the joint assessment of mitigation and adaptation is called for