Mikael Skou Andersen
At the initiative of the World Bank and IMF an international coalition on carbon pricing was established in tandem with the Paris Agreement. Over the past five years, the share of global CO2 emissions subject to carbon pricing via either taxes or allowances has tripled, from 4 to 12 per cent. In anticipation of a widening gap between countries, the scope for border adjustments relative to carbon pricing deserves more attention. Border adjustments would require pricing of imports for their associated emissions to the same level as domestic goods, while exports to non-price countries may become eligible for refunds. Trade agreements under the WTO allow for such adjustment under its exemption clause provided countries do not agree to other corrective measures. As a highly sensitive measure, not only the complex technical and legal questions deserve attention, but how to make the best diplomacy of border adjustments requires careful consideration too.
Mikael Skou Andersen and Louise Martinsen
The circular economy concept emerged in response to resource shortages in the global economy. Its roots are found in mainstream environmental economics, although also ecological economics with its deterministic emphasis on the escalating entropy underpins the virtues of circularity. Environmental economic assessment and lifecycle analysis should be combined for analyzing the performance of novel circular technologies from a sustainability perspective. Estimates of the external costs related to the environmental burdens are required for the resulting welfare economic analysis of emerging green technologies. Once an elusive theoretical concept, externalities are nowadays routinely accounted for within the framework of impact pathway analysis. In this chapter an illustrative analysis of bio-based technologies, aimed at mobilizing domestic resources for cascading uses, provides an example of the insights that can be achieved from systematic environmental-economic analysis. The findings suggest that circularity is an ambiguous concept and its implementation calls for analytical scrutiny.
Mikael Skou Andersen and Janet E. Milne
Janet E. Milne and Mikael Skou Andersen
Massimo Pizzol, Maria Molinos-Senante, Hans Thodsen and Mikael Skou Andersen
Article 9 of the EU’s Water Framework Directive requires that Member States should provide ‘adequate incentives’ for efficient use of water resources. Although the Directive is mainly about the ecological quality of water bodies, control of quantity serves as an ‘ancillary element’ in delivering on the objectives. This article explores on the significance of water pricing reform for the ecological quality objectives for surface waters, and as a stepping stone in this analysis, for water resource use. It does so with a catchment based analysis of implications from water pricing reform introduced in the early 1990s in Denmark. Household water use is found to have been 50 per cent higher per capita before a reform, which introduced full-cost pricing and the fiscal Duty on Piped Water. The article finds that water pricing has an important role to play for future water quality management.