Cameron Hepburn

Learn More
The European Directive on the EU ETS allows governments to auction up to 10% of the allowances issued in Phase II 2008‐2012, without constraints specified thereafter. This paper reviews and extends the long‐standing debate about auctioning, in which economists have generally supported and industries opposed greater use of auctioning. The(More)
Climate change would impact different countries differently, and different countries have different levels of development. Equity-weighted estimates of the (marginal) impact of greenhouse gas emissions reflect these differences. Equity-weighted estimates of the marginal damage cost of carbon dioxide emissions are substantially higher than estimates without(More)
The last few years have witnessed important advances in our understanding of time preference and social discounting. In particular, several rationales for the use of time-varying social discount rates have emerged. These rationales range from the ad hoc to the formal, with some founded solely in economic theory while others reflect principles of(More)
Prescriptive economics requires that, unless there are very good reasons to the contrary, economic policy should be based on the principle that individuals’ preferences should count. Indeed, the entire body of ‘welfare economics’ centres round the formal identity of the statement “X prefers A to B” and the statement “X has higher welfare in A rather than(More)
Recent research suggests that social cost-benefit analysis should be conducted with a declining discount rate. For instance, Newell and Pizer [23] show that the U.S. certainty-equivalent discount rate declines through time, using a simple autoregressive model of U.S. interest rates. This paper extends that line of research, estimating both autoregressive(More)
Putting a price on carbon is critical for climate change policy. Increasingly, policymakers combine multiple policy tools to achieve this, for example by complementing cap-and-trade schemes with a carbon tax, or with a feed-in tariff. Often, the motivation for doing so is to limit undesirable fluctuations in the carbon price, either from rising too high or(More)
Farming of animals and plants has recently been considered not merely as a more efficient and plentiful supply of their products but also as a means of protecting wild populations from that trade. Amongst these nascent farming products might be listed bear bile. Bear bile has been exploited by traditional Chinese medicinalists for millennia. Since the 1980s(More)
The lack of real progress at the Durban climate change conference in 2011— postponing effective action until at least 2020—has many causes, one of which is the failure to address trade issues and in particular carbon leakage. This paper advances two arguments. First, it argues that the conventional view of Border Carbon Adjustments (BCAs) as a “dirty” trade(More)