John Rhys

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                    [post_content] => This comment considers German energy policy, as set out in the Energiewende, as seen from the perspective of attempts to reduce CO2 emissions, and the ambitions of the EU to be considered global leaders on this issue.  It argues that the nuclear moratorium is irrational and will significantly increase damaging emissions; and that policies of promoting renewables, while preferring coal over gas on grounds of cost, are inconsistent.
                    [post_title] => Current German Energy Policy - the “Energiewende”:  A UK and climate change perspective
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                    [post_content] => Governments across the OECD are committed to ambitious reductions in CO2 emissions.  Electricity is central to this agenda as the sector where the earliest and steepest cuts will be sought.  A number of countries, like the UK, are already in the process of reforming their electricity markets in order to ensure the delivery of the huge quantities of low carbon investment which will be needed; these reforms have involved a more central role for the government in decision-making, and in underwriting investments.  The paper considers whether the role of market forces is inevitably going to be increasingly limited by the existence of rigorous environmental targets, and examines a number of  options which could still leave a significant degree of competition.  It also looks at the wider changes which will accompany decarbonisation of the sector, for instance the increasing importance of the demand-side and the need for further  changes in wholesale market structures.  It concludes that governments need to address the wide range of issues involved in a coherent manner and at an early stage if the process of decarbonisation is to be undertaken successfully.
                    [post_title] => Decarbonisation of the electricity sector – is there still a place for markets?
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                    [post_content] => The EU emissions trading system is failing to produce a carbon price that is efficacious in promoting low-carbon investment or a low-carbon economy. Carbon price projections from this scheme are nevertheless incorporated in the formal guidance issued by the UK Treasury to guide government departments in appraising policy initiatives and projects. The Treasury’s guidance deals with this issue of the carbon price by trying to maintain a distinction between emissions in what it calls the ‘traded sector’, i.e. sectors such as power and aviation covered by the EU ETS, and the ‘non-traded sector’, which includes domestic gas and road transport. This distinction is untenable and has the potential to create serious distortions in policy. This Comment explains how these are likely to arise.
                    [post_title] => Comments on October 2011 Guidance Issued by Treasury on Valuation of Greenhouse Gas Emissions
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                    [post_content] => Carbon dioxide (CO2) emissions are essentially cumulative in character; but much of the economic analysis and policy making in relation to the mitigation of CO2 emissions fails to reflect fully this fundamental feature of any analysis of the impact of emissions on climate.  The cumulative and irreversible nature of CO2 emissions implies that a significantly heavier weight should attach to current as opposed to future emissions.  Unfortunately current application of market-based approaches to limiting carbon emissions delivers a contradictory message, with the price of current emissions being very low but with a prospect of rapid rises in the future.  This inconsistency has the potential to create major distortions in policy and is likely to be seriously sub-optimal.  Similar criticisms can be levelled at policies or climate negotiations based on individual year targets rather than cumulative emissions.  Policy making needs to redress this imbalance.  Focus on the cumulative nature of CO2 also strengthens the case for urgency and leads to more recognition of the positive option value of early action on emissions.
                    [post_title] => Cumulative Carbon Emissions and Climate Change: Has the Economics of Climate Policies Lost Contact with the Physics?
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Latest Publications by John Rhys