Ian Parry

Ian Parry is Principal Environmental Fiscal Policy Expert in the IMF's Fiscal Affairs Department.

  • Energy Tax and Regulatory Policy in Europe

    Energy Tax and Regulatory Policy in Europe

    Reform Priorities

    Ian Parry, Karen Pittel, and Herman Vollebergh

    Concise introductions to the main issues in energy policy and their interaction with environmental policies in the EU.

    The European Union (EU) faces critical challenges in energy policy making, the most pressing of which are how to achieve the deep greenhouse gas reductions promised at the December 2015 UN Conference of the Parties in Paris, and how this effort can be coordinated with already existing policies. Energy policy is primarily a member state responsibility, and policy makers need an overarching view of the main issues in energy policy and their interaction with environmental policies. This volume aims to fill this need, offering concise introductions to some of the major issues as well as practical suggestions for policy making.

    The contributors discuss reforms to the EU Emissions Trading System (ETS), the world's largest carbon market; ways to improve the operation and integration of the EU's power grids, in terms of both supply and demand; changes to the EU's Energy Tax Directive, which sets tax floors for fuels outside the ETS; the coordination of climate policies with policies to promote renewables and energy efficiency; research into clean technology; challenges to shale gas development; and transportation policy and the need for action on such externalities as traffic congestion. Finally, contributors consider obstacles to reform, including its potential effects on vulnerable households and energy-intensive industries.

    Contributors Mikael Skou Andersen, Niels Anger, Bruno De Borger, Antoine Dechezleprêtre, Jos Delbeke, Ottmar Edenhofer, Christian Flachsland, Beatriz Gaitan, Polona Gregorin, Cameron Hepburn, Alan Krupnick, Andreas Löschel, Claudio Marcantonini, Felix Christian Matthes, Paul Nahmmacher, Ian Parry, Karen Pittel, David Popp, Stef Proost, Christina Roolfs, Bert Saveyn, Oliver Schenker, Stephen Smith, Alexander Teytelboym, Kurt Van Dender, Herman Vollebergh, Nils-Henrik M. von der Fehr, Zhongmin Wang, Georg Zachmann

    • Hardcover $40.00 £32.00

Contributor

  • Global Carbon Pricing

    Global Carbon Pricing

    The Path to Climate Cooperation

    Peter Cramton, David JC MacKay, Axel Ockenfels, and Steven Stoft

    Why the traditional “pledge and review” climate agreements have failed, and how carbon pricing, based on trust and reciprocity, could succeed.

    After twenty-five years of failure, climate negotiations continue to use a “pledge and review” approach: countries pledge (almost anything), subject to (unenforced) review. This approach ignores everything we know about human cooperation. In this book, leading economists describe an alternate model for climate agreements, drawing on the work of the late Nobel laureate Elinor Ostrom and others. They show that a “common commitment” scheme is more effective than an “individual commitment” scheme; the latter depends on altruism while the former involves reciprocity (“we will if you will”).

    The contributors propose that global carbon pricing is the best candidate for a reciprocal common commitment in climate negotiations. Each country would commit to placing charges on carbon emissions sufficient to match an agreed global price formula. The contributors show that carbon pricing would facilitate negotiations and enforcement, improve efficiency and flexibility, and make other climate policies more effective. Additionally, they analyze the failings of the 2015 Paris climate conference.

    Contributors Richard N. Cooper, Peter Cramton, Ottmar Edenhofer, Christian Gollier, Éloi Laurent, David JC MacKay, William Nordhaus, Axel Ockenfels, Joseph E. Stiglitz, Steven Stoft, Jean Tirole, Martin L. Weitzman

    • Hardcover $35.00 £28.00
  • The Economics and Political Economy of Energy Subsidies

    The Economics and Political Economy of Energy Subsidies

    Jon Strand

    The economic and political aspects of energy subsidies, viewed both theoretically and empirically, with a focus on fossil fuel subsidies in developing nations.

    Government subsidies to energy are widespread and represent a heavy burden on public budgets in many countries. Both producers and consumers may be subsidized; the most common subsidies are for motor fuel consumption and electricity production and consumption. The subsidies to consumers often prove particularly harmful because they result in increased energy consumption, increased carbon emissions, and distortionary effects on consumer behavior. This book fills a void in the literature by providing a first, broad and diverse, analysis of several aspects of the economic and political economy aspects of government energy subsidies. The contributors take both theoretical and empirical approaches, with most of the focus on subsidies to fuel and electricity in non-OECD countries.

    The chapters cover such topics as energy pricing, reelection incentives for politicians that may encourage excessive subsidies; political corruption and “bribing equilibria,” the the “resource curse” in developing countries when the gains from natural resource windfalls are largely wasted, the “entitlement” of energy subsidies in autocracies, and distributional issues when subsidies targeted to the poor are removed in high-income countries. One chapter discusses nonharmful subsidies: the potential economic effects of subsidizing the manufacturing and deployment of renewable energy.

    Contributors Carolyn Fischer, Mads Greaker, Mohammad Habibpour, Michelle Harding, Christina Kolerus, Christos Kotsogiannis, Jim Krane, Alber Touna Mama, Raffaele Miniaci, Marco Pani, Ian Parry, Carlo Perroni, Leonzio Rizzo, Knut Einar Rosendahl, Carlo Scarpa, Neda Seiban, Suphi Sen, Jon Strand, Paola Valbonesi, Herman Vollebergh

    • Hardcover $35.00 £28.00