Download Generic Options - Society for Bangladesh Climate Justice

Society for Bangladesh Climate Justice
Seminar on Climate Change Impacts on Bangladesh
University of British Columbia
9 December 2009
Global – and Domestic –
Responsibilities for Climate Change
in Bangladesh
John Richards
Graduate Public Policy Program
Simon Fraser University
Visiting Faculty
IUBAT – International University of Business Agriculture
and Technology, Dhaka
[email protected]
“There is nothing more difficult to carry out, nor more doubtful of
success, nor more dangerous to handle, than to institute a new
order of things” – Machiavelli
World Emissions, 2006
(% change in selected countries 2005/06, million tonnes of CO2)
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The essentials in Copenhagen
UN climate chief Yvo de Boer hopes the conference will reach agreements
on four political essentials …
1. How much are the industrialized countries willing to reduce their emissions of
greenhouse gases?
2. How much are major developing countries such as China and India willing to
do to limit the growth of their emissions?
3. How is the help needed by developing countries to engage in reducing their
emissions and adapting to the impacts of climate change going to be
financed?
4. How is that money going to be managed?
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Historical (In)equities (1)
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Historical (In)equities (2)
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World map of hazard hotspots and countries most affected
from 1998-2007 according to the Climate Risk Index
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Climate change
factors external
to Bangladesh
(1)
• Glacier melting
• Deforestation
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Deforestation in Nepal
– “100-year” monsoon floods occurred in 1988 and
2004
• Changes in monsoon patterns
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Climate
change
factors
external to
Bangladesh
(2)
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• Rising sea temperature
– more intense cyclones and sea surges in Bay of Bengal
– Rising sea volume and hence sea levels
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Bangladesh to demand 15pc of adaptation fund: Hasan
9 December 2009
Bangladesh will demand at least 15 percent of the global
climate change adaptation fund -- proportionate to its
population -- at the Copenhagen summit.
State Minister for Environment and Forests Hasan Mahmud
said this yesterday explaining Bangladesh's stand at the
summit.
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Bangladesh's role at Copenhagen
climate convention
(Daily Star, 24 November 2009)
“At a recent conference at Harvard University on
Bangladesh, I proposed the following measures
to form the cornerstone of Bangladesh's efforts to
combat climate change:
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-Invest in renewable energy,
-Initiate quantitative targets for carbon reduction,
Abdullah Shibli, economist
-Improve energy efficiency,
-Reward conservation, innovation, and mitigation efforts,
-Develop domestic and non-fossil energy sources,
-Research and promote an alternative low-carbon development strategy,
-Institute cost-benefit approach for mitigation and abatement projects,
-Impose a carbon tax on imported fuel,
-Raise our voice in international climate forums and participate in sequestration
projects, and
-Appoint a climate change czar to advise the PM and coordinate policy.” 10
Nepal to Burma –
400 million living in fragile states with poor governance
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Corruption Perception Index
Transparency International
Year
2005
Bangladesh
rank
158
Number of
countries
ranked
158
2006
156
163
2007
162
179
2008
147
180
2009
139
180
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Bangladesh Governance
Indicators
1996 (bottom) - 2008 (top)
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Generic Options 1. Regulations
Advantages
• simple to design
Disadvantages
• high compliance costs (role for performance standards)
• limited ability of developing country governments to enforce
Examples:
• Canadian rising insulation standards in building codes
• US new car manufacturers’ fleet mileage constraints
• Dhaka ban on 2-stroke “baby taxis”
and substitution of CNG-powered
equivalent
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Generic Options
2. Efficiency (Pigovian) taxes/subsidies
Advantages
• internalize externalities without need to impose regulations
Disadvantages
• administrative complexity of tax/subsidy design
• political conflict arising due to redistributive effects
Example:
• Carbon taxes
• 150 million Chinese subsidized coal stoves
• road pricing in various cities (e.g., Singapore, London)
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Generic Options
3. Markets in “goods and bads”
Advantages
• exploit efficiency of market exchange by allocating
“abatement” to least cost provider
Disadvantages
• administrative complexity of market design
• political conflict arising due to redistribution effects
(e.g., is initial tradable permit allocation by grant or
purchase?)
• High variability of permit price
Examples:
• Renewable portfolio standards in US, UK and elsewhere
• European Union (EU) cap and trade market
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Generic Options
4. Redefinition of property rights
Advantages
• Provide strong incentives to agents to “internalize”
• minimize government supervision
Disadvantages
• Transaction costs
Examples:
• Unitization of oil fields in early years of US oil
developments
• Creation of property rights (private or communal)
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over forests in Nepal
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Potential
domestic
adaptationmitigation
strategies (1)
• Disaster preparation
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Bangladesh village cyclone shelter
– Cyclone shelters and village warning systems
• Forestry
– Protection of remaining forest cover (e.g., Sunderban)
– Forestation of coastal land
– Urban parks (shade and breeze)
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Potential
domestic
adaptationmitigation
strategies (2)
• Power sector
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Improved Chinese stove (left),
traditional stove (right)
– Village coal distribution for domestic heating (to avoid
use of biomass fuels)
– Expanded power capacity
• Population planning
– Good but not good enough (current fertility rate: 2.7)
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Potential
domestic
adaptationmitigation
strategies (3)
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CNG taxis issue less CO2 per liter
than gasoline-powered cars
• Sensible pricing of carbon-intensive activities
–
–
–
–
–
Import duties on petroleum products
High automobile licence fees
Tax on hydrocarbon fuels based on emissions (carbon tax)
Congestion road taxation in Dhaka and Chittagong
Cost-recovery pricing for Power Development Board
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