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Political Science > Environmental Policy

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Cover Selected Issues Papers
Assessing Recent Climate Policy Initiatives in the Netherlands: NETHERLANDS
Chen Chen, Koralai Kirabaeva, Danielle N Minnett, Ian W.H. Parry, Emanuele Massetti, Tjeerd Tim, Sylke von Thadden-Kostopoulos, and Geoffroy Dolphin
The Netherlands has committed to the EU’s ambitious targets for cutting greenhouse gas emissions by 2030 and emissions neutrality in 2050 but at the same time is also vulnerable to sea-level rise and flood risks. This paper reviews recent mitigation policy initiatives in the Netherlands, including carbon levies for the industry and power sectors, energy and car tax reforms, and air passenger taxes, and recommends some modifications to these initiatives. The paper also provides assessments of hazards and macroeconomic risks from weather shocks and climate change and assesses the adaption plan against key principles on mainstream climate change into macro-fiscal planning.
Keywords:
Carbon levy; carbon pricing; climate change adaptation; climate change mitigation; emissions trading system; energy taxes; floods; green PFM; Netherlands climate strategy; price floor; sea-level rise; policy initiative; adaption initiatives in the Netherlands; Policy recommendation; C. assessing climate risk; Climate change; Natural disasters; Climate policy; Greenhouse gas emissions; Natural gas sector; Northern Europe; Global
Cover Selected Issues Papers
Labor Market Implications for Green Investments and Carbon Pricing in Spain: Spain
Ana Lariau and Ms. Yu Shi
Labor Market Implications for Green Investments and Carbon Pricing in Spain green policies; input-output matrix; employment; occupations; skills ABSTRACT: We provide a tractable framework for assessing the labor market impact of policies that support the green transition of the Spanish economy, taking into account input-output linkages. We present illustrative examples that quantify changes in sectoral employment, occupations and skills stemming from two different green policies: (i) the announced green investments in the recovery plan; and (ii) an increase in carbon pricing and an expansion of the EU Emission Trading System (ETS). Our analysis shows that the labor market impact of these two policies is net positive, although the results depend on the design of the green policies, particularly on the use of the proceeds from the increase in carbon pricing. Strengthening active labor market policies, with a focus on training, and complementing them with education policies such as the expansion of vocational training, would facilitate the transition of workers from shrinking to expanding sectors.
Keywords:
green policies; input-output matrix; employment; occupations; skills; labor market impact; input-output linkage; labor market implication; carbon pricing; impact of policy; IMF staff calculation; Climate finance; Sustainable growth; Climate policy
Cover IMF Working Papers
Willingness to Pay for Clean Air: Evidence from the UK
Giorgio Maarraoui, Walid Marrouch, Faten Saliba, and Ada Wossink
This paper uses life satisfaction data to help the design of climate mitigation policies in the United Kingdom. We assess the effects of the exposure to ambient pollutants on long-term life satisfaction and short-term mental health in the UK. We estimate augmented Cobb-Douglas utility functions using pooled and random effects ordinal logit models. Results show that increases in NO2, PM10 and PM2.5 significantly decrease the odds of longterm happiness and short-term mental health in the UK. The willingness to pay for clean air is also significant and increases with level of education. These measurements derived can be used as benchmarks for pollution abatement subsidies or pollution taxes and can help in projecting a more comprehensive assessment of costs and benefits.
Keywords:
Air Pollution; Happiness; Policy Valuation; Climate Change; Environmental Policies; Pollution Taxes; Pollution Abatement Subsidies; life satisfaction data; dataset description; air pollutant; pollutants' correlation; household data; ordinal Logit; Income; Europe; Global