The COVID-19 pandemic has pushed the world into a recession. For 2020 it will be worse than the global financial crisis. The economic damage is mounting across all countries, tracking the sharp rise in new infections and containment measures put in place by governments. […]
July 26, 2018
Although we live in an age of unparalleled wealth and technological achievement, billions of people are still suffering from poverty, hunger, exclusion, and conflict. […]
By Ian Parry
June 8, 2018
The world is getting hotter, resulting in rising sea levels, more extreme weather like hurricanes, droughts, and floods, as well as other risks to the global climate like the irreversible collapsing of ice sheets. […]
January 19, 2018
This has never happened before. Never. Three years of stagnating carbon dioxide emissions coupled with relatively healthy global economic growth. In this podcast , International Energy Agency Chief Economist Laszlo Varro talks about leaving fossil fuels in the past. […]
July 31, 2017
The switch from horses to automobiles in the 20th century paved the way for the rise of oil-based transportation and energy use. Today, electric vehicle ownership is picking up speed. Greater affordability of electric vehicles will likely steer us away from our current sources of energy for transportation, and toward more environmentally friendly technology. And that can happen sooner than you think.
Our Chart of the Week from a recent IMF working paper shows that the transition away from motor vehicles could happen in the next 10 to 25 years, based on parallel shifts in the 20th century. Patterns observed in the early days of the horse-car transition closely resemble present-day electric vehicle adoption rates. Between 2011 and 2015, the average annual growth rate of electric vehicle ownership was 120 percent. This is, in […]
Version in 中文 (Chinese)
A single policy could do it all for China. A carbon tax—an upstream tax on the carbon content of fossil fuel supply—could dramatically cut greenhouse gases, save millions of lives, soothe the government’s fiscal anxieties, and boost green growth. […]
By Ian Parry
With global leaders set to start signing the landmark Paris Agreement on climate change tomorrow—April 22 is Earth Day—at the United Nations in New York, countries will embark on the potentially difficult and contentious issue of setting prices for greenhouse gas emissions, most importantly carbon dioxide (CO2). Our back of the envelope calculations show that most large emitters will need to charge anywhere from $50 to $100 per ton or more (in current prices) by 2030 to meet their commitments to reduce carbon emissions.
“The human influence on the climate system is clear and is evident from the increasing greenhouse gas concentrations in the atmosphere, positive radiative forcing, observed warming, and understanding of the climate system.” —Intergovernmental Panel on Climate Change, Fifth Assessment Report
Fossil fuel prices are likely to stay “low for long.” Notwithstanding important recent progress in developing renewable fuel sources, low fossil fuel prices could discourage further innovation in and adoption of cleaner energy technologies. The result would be higher emissions of carbon dioxide and other greenhouse gases.
Policymakers should not allow low energy prices to derail the clean energy transition. Action to restore appropriate price incentives, notably through corrective carbon pricing, is urgently needed to lower the risk of irreversible and potentially devastating effects of climate change. That approach also offers fiscal benefits.