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31. The Content of a WTO Climate Waiver

Author:
James Bacchus
Publication Date:
12-2018
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
Neither the trade regime nor the climate regime has so far displayed any willingness to confront the coming clash between climate ambitions and trade rules. To minimize the economic and political risks of such a collision, the members of the World Trade Organization (WTO) should adopt a WTO climate waiver. To further carbon pricing and to facilitate the necessary green transition in the global economy, the core of a WTO climate waiver should be a waiver from the applicable trade rules for national measures that: discriminate on the basis of carbon and other greenhouse gases used or emitted in making a product; fit the definition of a climate response measure as defined by the United Nations Framework Convention on Climate Change; and do not discriminate in a manner that constitutes a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade. A WTO climate waiver should also include support for trade restrictions by carbon markets and climate clubs, trade disciplines on fossil fuel subsidies, and green subsidies that support innovative outcomes rather than particular technologies. Along with a climate waiver, WTO members should also confirm that carbon taxes qualify as border tax adjustments under trade rules. The adoption of a WTO climate waiver is a central and critical part of the overall reimagining of international trade law that is needed to fulfill the stated WTO goal of engaging in trade and other economic endeavours consistently with the objectives of sustainable development.
Topic:
Climate Change, International Trade and Finance, World Trade Organization, and Green Technology
Political Geography:
Global Focus

32. Participation of Non-party Stakeholders under the UNFCCC: Options for Future Engagement

Author:
Freedom-Kai Phillips
Publication Date:
12-2018
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
Participation of “non-party stakeholders” in the work of the United Nations Framework Convention on Climate Change (UNFCCC) was affirmed in the decision adopting the Paris Agreement and flagged in the preamble of the agreement itself. This paper discusses the current approaches to stakeholder participation under the UNFCCC and explains concerns regarding the existing model.
Topic:
Climate Change, United Nations, and Green Technology
Political Geography:
Global Focus

33. Do financing constraints matter for the direction of technical change in energy R&D?

Author:
Joëlle Noailly and Roger Smeets
Publication Date:
03-2018
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
The objective of this study is to examine the impact of firms' financing constraints on innovation activities in renewable (REN) versus fossil-fuel (FF) technologies. Our empirical methodology relies on the construction of a firm-level dataset for 1,300 European firms over the 1995-2009 period combining balance-sheet information linked with patenting activities in REN and FF technologies. We estimate the importance of the different types of financing (e.g. cash flow, long-term debt, and stock issues) on firms' patenting activities for the different samples of firms. We use count estimation techniques commonly used for models with patent data and control for a large set of firm-specific controls and market developments in REN and FF technologies. We find evidence for a positive impact of internal finance on patenting activities for the sample of firms specialized in REN innovation, while we find no evidence of this link for other firms, such as firms conducting FF innovation or large mixed firms conducting both REN and FF innovation. Hence, financing constraints matter for firms specialized in REN innovation but not for other firms. Our results have important implications for policymaking as the results emphasize that small innovative newcomers in the field of renewable energy are particularly vulnerable to financing constraints.
Topic:
Environment, Sustainable Development Goals, Green Technology, Renewable Energy, and R&D
Political Geography:
Global Focus

34. Energy in Economic Growth: Is Faster Growth Greener?

Author:
Gregor Semieniuk
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
An influential theoretical hypothesis holds that if aggregate productivity growth accelerates, then so does the decline in energy intensity. Whether faster growth is greener in this sense is crucial for modeling future growth and climate change mitigation, but empirical evidence is lacking. This paper characterizes the global, long-run historical relationship between changes in energy intensity and labor pro- ductivity growth rates. Basing estimates on an unbalanced panel of 180 countries for the period 1950-2014 and the world as a whole, it captures a significantly larger historical window than previous studies. The paper finds a stylized fact whereby the rate at which energy intensity changes is constant or even increases as labor productivity accelerates. Faster growth is not greener. This provides important new information for calibrating integrated assessment models, many of which make a green growth assumption in near term projections.
Topic:
Economics, Energy Policy, Economic Growth, Green Technology, and Renewable Energy
Political Geography:
Global Focus

35. Overcoming Obstacles in Global Climate Action from Copenhagen to Paris: Issue Framing as a Tool to Understand Opportunities for Policy Change

Author:
Jean A. Garrison
Publication Date:
08-2017
Content Type:
Working Paper
Institution:
The Kolleg-Forschergruppe (KFG)
Abstract:
The global climate change agreement completed on December 12, 2015 in Paris set a collective target to cap greenhouse gas emissions in order to limit the temperature increase to 2 degrees Celsius with a goal to get as close as possible to 1.5 degrees above pre-industrial levels. These goals were to be accomplished through a “bottom up” mechanism for national policy approaches in which states made their own choices about how they would meet climate targets. This paper examines why and how an agreement was possible in 2015 when it had not been before. What was different in Paris, or leading up to Paris, so that the parties involved successfully came to an agreement when it was not possible in Copenhagen? This paper presents a problem definition and issue framing perspective to examine the shift in the discussion in Paris from the burdens of climate action to opportunities climate action offered for economic and development models. It provides a road map to understand the role of key stakeholders, including governments, the business community, civil society, and subnational actors in the making of the climate agreement.
Topic:
Climate Change, Environment, International Cooperation, Green Technology, and Paris Agreement
Political Geography:
Global Focus

36. Advancing Climate-Compatible Infrastructure Through the G-20

Author:
Gwynne Taraska, Peter Ogden, Nancy Alexander, and Howard Marano
Publication Date:
12-2016
Content Type:
Special Report
Institution:
Center for American Progress - CAP
Abstract:
To date, 17 G-20 countries—which account for 67 percent of global greenhouse gas pollution—have officially joined the Paris Agreement, bringing the pact into effect sooner than anyone expected.1 If they follow through with their commitments to reduce emissions, it will represent unprecedented progress in the global effort to curb climate change. U.S. President-elect Donald Trump, meanwhile, has suggested a number of actions, including dismantling the Clean Power Plan and pledging to “cancel” the Paris Agreement, that would drive the United States—and potentially other countries—in the opposite direction.2 In light of this, the G-20 summit in July 2017 provides an important opportunity for committed major powers to resist backsliding by any and all G-20 countries—and even to make some progress in meeting the climate challenge. To its credit, the German government, which officially assumed the G-20 presidency in December 2016, has taken steps that position the summit well for just such an effort. When German Chancellor Angela Merkel announced her three “pillar” objectives for the summit, she explicitly identified climate change as a priority. These pillars include fostering global economic stability; making the global economy viable for the future, including through the Paris Agreement and the 2030 Agenda for Sustainable Development; and establishing the G-20 as a “community of responsibility,” including by promoting a compact with Africa that would address infrastructure investment, among other topics.3
Topic:
Climate Change, International Cooperation, Infrastructure, G20, and Green Technology
Political Geography:
Europe, Germany, and Global Focus

37. The Impact of Green Innovation on Energy Intensity: An Empirical Analysis for 14 Industrial Sectors in OECD Countries

Author:
Jules-Daniel Wurlod and Joëlle Noailly
Publication Date:
03-2016
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper analyses the impact of green innovation on energy intensity in a set of 14 industrial sectors in 17 OECD countries over the 1975-2005 period. We create a stock of green patents for each industrial sector and estimates a translog cost function to measure the impact of green innovation on energy intensity, next to other factors such as input substitution and autonomous technical change. We find that green innovation has contributed to the decline in energy intensity in the majority of sectors: the median elasticity of energy intensity with respect to green patenting is estimated at -0.03 in our sample. Hence, a 1% increase in green patenting activities in a given sector is associated with a 0.03% decline in energy intensity. The magnitude of the effect is larger in energy-intensive sectors and in more recent years. We also find that the impact of an additional green patent on energy intensity is larger than an average non-green patent. Our results are robust to alternative definitions of patents.
Topic:
Science and Technology, Green Technology, Innovation, Industry, Patents, OECD, and Energy
Political Geography:
Global Focus

38. Multinational Firms and the Internationalization of Green R&D: A Review of the Evidence and Policy Implications

Author:
Joëlle Noailly and David Ryfisch
Publication Date:
12-2014
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper presents novel empirical evidence on the internationalization of green R&D by multinational firms (MNCs), as measured by patents data. Using data on inventors’ addresses for the set of 1,200 MNCs firms patenting in green technologies over the 2004-2009 period, we find that about 17% of green patents result from MNCs R&D investments conducted outside their home countries. MNCs tend to locate their foreign green R&D activities in other OECD markets and in China, in particular in lightings and solar technologies. The empirical analysis reveals that the probability of conducting green R&D abroad increases with the host country’s stringency of environmental regulation, market size and (green) R&D intensity. Also, relatively lower wages for scientists and engineers, and stronger protection for intellectual property rights in the host country increase the likelihood for MNCs to offshore green R&D. The paper concludes by discussing the policy implications of this changing global innovation landscape.
Topic:
Green Technology, Multinational Corporations, and Research and Development
Political Geography:
Global Focus

39. Green Transformation towards Sustainable Development?

Author:
Lisa-Marie Althaus
Publication Date:
05-2013
Content Type:
Working Paper
Institution:
Institute for Development and Peace
Abstract:
Both the concept of sustainable development (SD) and the new green transformation concepts (GTC) aim for the integration of environmental protection and development. Previous comparative research on these GTC is not based on theoretically founded crite- ria that are related to the established development paradigm of SD. The study closes this research gap by providing a conceptual comparison of different GTC versions as pub- lished by UNEP, the OECD, and the German Advisory Council on Global Change (WBGU). The analysis reveals that GTC concepts are indeed based on central goals and principles of SD. Unlike the concept of SD, the GTC acknowledges planetary boundaries as limits to growth. However, the more economy-focused concepts of UNEP and the OECD do not only disregard important social goals but also concerns of intergenerational equity and the globality principle of SD. In contrast, the WBGU focuses on civil society participation and both intra- and intergenerational equity by aiming for decisive institu- tional changes. It is shown that this GTC partly extends beyond the scope of SD and thus could mark an important step with regard to the further development of the concept.
Topic:
Civil Society, Climate Change, Development, Economics, Green Technology, and Sustainability
Political Geography:
Global Focus