The Distributional Impact of a Carbon Tax in Ireland

We study the effects of carbon taxation and revenue recycling across the income distribution in Ireland. Price changes of fuels and all other final goods and services are taken into account. If applied only to the emissions not covered by the EU Emissions Trading Scheme, a carbon tax of €20/tCO2 would cost the poorest households around €3.5/week and the richest ones €5/week. The tax is regressive, therefore. However, if the revenue is used to increase social benefits and tax credits, households across the income distribution can be made better off without exhausting the total carbon tax revenue.

On International Equity Weights and National Decision Making on Climate Change

Estimates of the marginal damage costs of carbon dioxide emissions require the aggregation of monetised impacts of climate change over people with different incomes and in different jurisdictions. Implicitly or explicitly, such estimates assume a social welfare function and hence a particular attitude towards equity and justice. We show that previous approaches to equity weighing are inappropriate from a national decision maker’s point of view, because domestic impacts are not valued at domestic values. We propose four alternatives (sovereignty, altruism, good neighbour, and compensation) with different views on concern for and liability towards foreigners. The four alternatives imply radically estimates of the social cost of carbon and hence the optimal intensity of climate policy.domestic climate policy, social cost of carbon, equity weights

The Impact of Government Policy on Private Car Ownership in Ireland

We construct a model of the stock of private cars in the Republic of Ireland. The model distinguishes cars by fuel, engine size and age. The modelled car stock is built up from a long history of data on sales, and calibrated to recent data on actual stock. We complement the data on the number of cars with data on fuel efficiency and distance driven – which together give fuel use and emissions – and the costs of purchase, ownership and use. We use the model to project the car stock from 2010 to 2025. The following results emerge. The 2009 reform of the vehicle registration and motor tax has led to a dramatic shift from petrol to diesel cars. Fuel efficiency has improved and will improve further as a result, but because diesel cars are heavier, carbon dioxide emissions are reduced but not substantially so. The projected emissions in 2020 are roughly the same as in 2007. In a second set of simulations, we impose the government targets for electrification of transport. As all-electric vehicles are likely to displace small, efficient, and little-driven petrol cars, the effect on carbon dioxide emissions is minimal. We also consider the scrappage scheme, which has little effect as it applies to a small fraction of the car stock only,

The Distributional Effects of Value Added Tax in Ireland

In this paper we examine the distributional effects of Value Added Tax (VAT) in Ireland. Using the 2004/2005 Household Budget Survey, we assess the amount of VAT that households pay as a proportion of weekly disposable income. We measure VAT payments by equivalised income decile, households of different composition and different household sizes. The current system is highly regressive. With the use of a micro-simulation model we also estimate the impact of changing the VAT rate on certain groups of items and the associated change in revenue. We also consider how the imposition of a flat rate across all goods and services would affect households in different categories. The Irish Government has recently announced that it proposes to increase the standard rate of VAT to 22 per cent in 2013 and to 23 per cent in 2014. We examine the distributional implications of such increases. The general pattern of results shows that those hardest hit are households in the first income decile, households in rural areas, 6 person households and households containing a single adult with children.

Theory of evaporative cooling with energy-dependent elastic scattering cross section and application to metastable helium

The kinetic theory of evaporative cooling developed by Luiten et al. [Phys. Rev. A 53, 381 (1996)] is extended to include the dependence of the elastic scattering cross section on collision energy. We introduce a simple approximation by which the transition range between the low-temperature limit and the unitarity limit is described as well. Applying the modified theory to our measurements on evaporative cooling of metastable helium we find a scattering length |a| = 10(5) nm

SEA LEVEL RISE AND EQUITY WEIGHTING

Using the FUND model, an impact assessment is conducted over the 21st century for rises in sea level of up to 2-m/century and a range of national socio-economic scenarios. This model balances the costs of retreat with the costs of protection, including the effects of coastal squeeze. While the costs of sea-level rise increase due to greater damage and protection costs, the model suggests that an optimum response in a benefit-cost sense remains widespread protection of developed coastal areas, as identified in earlier analyses. The socio-economic scenarios are also important in terms of influencing these costs. In terms of the four components of costs considered in FUND, protection seems to dominate, with substantial costs from wetland loss under some scenarios. The regional distribution of costs shows that a few regions experience most of the costs, especially East Asia, North America, Europe and South Asia. Importantly, this analysis suggests that protection is much more likely and rational than is widely assumed, even with a large rise in sea level. However, there are some important limitations to the analysis, which collectively suggest that protection may not be as widespread as suggested in the FUND analysis. Equity weighting allows the damages to be modified to reflect the wealth of those impacted by sea-level rise. Taking these distributional issues into account increases damage estimates by a factor of three, reflecting that the coasts fall disproportionately on poorer developing countries.climate change, sea level rise, equity weighting

GLOBAL ESTIMATES OF THE IMPACT OF A COLLAPSE OF THE WEST ANTARCTIC ICE SHEET: AN APPLICATION OF FUND

The threat of an abrupt and extreme rise in sea level is widely discussed in the media, but little understood in practise, including the likely impacts of such a rise. This paper explores for the first time the global impacts of extreme sea-level rise, triggered by a hypothetical collapse of the West Antarctic Ice Sheet (WAIS). As the potential contributions remain uncertain, a wide range of scenarios are explored: WAIS contributions to sea-level rise of between 0.5m/century up to 5m/century. Together with other business-as-usual sea-level contributions, in the worst case this gives an approximately 6-m rise of global-mean sea level from 2030 to 2130. Global exposure to extreme sea-level rise is significant: roughly 400 million people (or about 8% of global population) are threatened by a 5-m rise in sea level, just based on 1995 data. The coastal module within the FUND model is tuned with global data on coastal zone characteristics concerning population, land areas and land use, and then used for impact analysis under the extreme sea-level rise scenarios. The model considers the interaction of (dry)land loss, wetland loss, protection costs and human displacement, assuming perfect adaptation based on cost-benefit analysis. Unlike earlier analyses, response costs are represented in a non-linear manner, including a sensitivity analysis based on response costs. It is found that much of the world’s coast would be abandoned given these extreme scenarios, although according to the global model, significant lengths of the world’s coast are worth defending even in the most extreme case. Hence, this suggests that actual population displacement would be a small fraction of the potential population displacement. This result is consistent with the present distribution of coastal population, which is heavily concentrated in specific areas. Hence a partial defence can protect most of the world’s coastal population. However, protection costs rise substantially diverting large amounts of investment from other sectors, and large areas of (dry)land and coastal wetlands are still predicted to be lost. While some observations of response to abrupt relative sea-level rise due to subsidence support the global model results, detailed case studies of the WAIS collapse in the Netherlands, Thames Estuary and the Rhone delta suggest a greater potential for abandonment than shown by the global model. This probably reflects a range of issues, including: (1) economic criteria such as the cost-benefit ratio is not the only factor which drives response decisions, with wider perceptions of risk driving the actual response; (2) the inefficiencies of adaptation in the real world, including indecision and competition for limited resources; and (3) the possible loss of confidence under the scenario of abrupt climate change. Collectively, these results illustrate an area where there are potential limits to adaptation, even when economic analysis suggests that adaptation will occur. The significant impacts found in the global model together with the potential for greater impacts as found in the detailed case studies shows that the response to abrupt sea-level rise is worthy of further research, including exploring the differing impact results by scale.Abrupt climate change, sea-level rise, coastal impacts, adaptation, adaptation limits