Ronald Steenblik

Reform of coal policies in Western and Central Europe: Implications for the environment

Abstract A subsidy to a polluting activity increases the level of that activity and therefore the amount of pollution it generates, ceteris paribus . In Western Europe, coal production is generally subsidized through price support and budgetary transfers; in Central Europe, both production and consumption are subsidized. To analyse the net effects of coal policies in Europe, however, one cannot treat them simply as equivalent to pure taxes or subsidies — other distortions besides those that are price induced have to be taken into account. Our qualitative assessment suggests that eliminating producer and consumer subsidies to coal in Europe would lead to environmental improvements and remove an important barrier to introducing greater competition in national electric power industries.

Subsidies: The Distorted Economics of Biofuels

Governments have influenced the development of bioenergy, particularly liquid biofuels (ethanol, biodiesel and pure plant oil used as a fuel), for several decades. This paper discusses the economics of biofuels and provides an overview of current policy measures to support their production and consumption. It discusses also how the different policies supportive of biofuels interact with broader agricultural, energy, environmental and transport policies, and the relative effectiveness of biofuels in achieving objectives in these areas. The paper concludes with several recommendations on further research.

Liberalisation of Trade in Renewable Energy and Associated Technologies

This paper, the second in a series, examines the implications of liberalising trade in three forms of renewable energy: biodiesel, solar-thermal water heaters, and geothermal energy systems. Eliminating tariffs on renewable energy and associated goods — which are 15% or higher on an ad valorem basis in many developing countries — would reduce a burden on consumers of energy, particularly people living in rural areas of developing countries, as it is in such areas that many renewable fuels and renewable-energy technologies are making, and are likely to make, their greatest contribution. Manufacturers located in OECD countries would benefit from increased trade in equipment, but so would a growing number of companies based in developing countries. In the case of biodiesel, developing countries have the potential to become major suppliers to OECD countries. For the maximum benefits of trade liberalisation in biodiesel, and solar-thermal and geothermal technologies, to be realised, however, additional reforms may be required in importing countries’ domestic policies, especially those affecting the pricing of liquid fuels, competition in the electricity sector, and protection of the environment.

A note on the concept of ‘subsidy’

Abstract The term ‘subsidy’ has been subject to many interpretations and much misuse, especially as regards energy subsidies. In common parlance a subsidy is a payment or tax concession from the government. Corden (1966) extended the concept to include in addition market transfers — that is, transfers from consumers to producers (or vice versa) resulting from government interventions that distort prices, such as tariffs or price controls. Several summary measures have been developed to indicate the level of subsidy provided by various instruments affecting a particular sector or activity.

Facilitating Trade in Selected Climate Change Mitigation Technologies in the Energy Supply, Buildings, and Industry Sectors

It is in every countrys interest that the deployment of carbon-change-mitigation technologies (CCMTs) be accomplished at the lowest possible cost to society and that their diffusion be rapid. Reducing barriers to trade is one way to accomplish that, especially given that it is unlikely that every country will become proficient in the production of every CCMT. This study provides a preliminary assessment of the significance of tariff and non-tariff barriers to trade in a representative selection of CCMTs chosen from among those that have been identified by the IPCC and the IEA as having a large economic potential for mitigation, are globally traded, and can be easily adapted to national circumstances. Those examined in the report include: (a) technologies, such as gas-fired reciprocating engines, used in the co-production of both process (or district) heat and electric power (CHP); (b) technologies, such as pipes and meters, used in the production and delivery of heating and cooling at the scale of a city district (DHC); (c) technologies that harness solar energy to heat water or heat or cool the air in buildings (SHC); and (d) relatively energyefficient electric motors and related systems. The study finds that trade in CCMTs faces higher tariffs in some non-OECD countries than in OECD countries. Judging from information provided by exporters in response to a questionnaire, non-tariff measures are common, and in some countries are acting as barriers to trade. Overcoming some of the general measures that impede trade will take time. However, the problems that lax enforcement of intellectual property rights, cumbersome customs-clearance procedures and non-transparent government procurement create for trade in CCTMs should be regarded as providing additional reasons for importing countries to address these issues urgently. Finally, importers may need, at the same time, to examine their domestic policies in order to address behind-the-border impediments to the diffusion of CCMT technologies.

Liberalisation of Trade in Renewable-Energy Products and Associated Goods

Numerous studies and events over the past several years have stressed the importance of eliminating barriers to trade in renewable forms of energy and the technologies used to exploit them, as part of a broader strategy to reduce dependence on more-polluting and less secure energy sources. This paper examines the implications of liberalising trade in renewable energy, focussing on several representative fuels and technologies (charcoal, solar photovoltaic systems and their complements, and wind turbines and wind pumps). Eliminating tariffs on renewable energy and associated goods — which are 15% or higher on an ad valorem basis in many developing countries — would reduce a burden on consumers of energy, particularly people living in rural areas of developing countries, as it is in such areas that many renewableenergy technologies are making, and are likely to make, their greatest contribution. Manufacturers located in OECD countries would benefit from increased trade in renewable-energy technologies and components, but so would a growing number of companies based in developing countries. The elimination of tariffs would also help to level the playing field between aid-financed goods, which often benefit from tariff waivers, and goods imported through normal market transactions, which often do not. For the maximum benefits of trade liberalisation in renewable-energy technologies to be realised, however, additional reforms may be required in importing countries’ domestic policies, especially those affecting the electricity sector in general, rural electrification in particular, and the environment.

Les biens environnementaux : Comparaison des listes de l'APEC et de l'OCDE

Ce chapitre compare deux listes de biens environnementaux qui ont ete utilisees dans le cadre des negociations de l’OMC sur la liberalisation des echanges de biens et services environnementaux. Il decrit la genese des listes, qui ont ete elaborees vers la fin des annees 90. La liste de l’OCDE avait pour objectif de servir de base pour une analyse des echanges et des droits de douane. Celle de l’APEC est le resultat de propositions faites par les economies membres du Forum de cooperation economique Asie-Pacifique, dont la finalite etait une liberalisation volontaire et rapide dans certains secteurs. La derniere section du chapitre identifie des elements communs des deux listes et precise certaines differences importantes.

Biens et services environnementaux : Synthese d'études de cas par pays

Ce chapitre fait la synthese de 17 etudes par pays sur les biens et services environnementaux (B&SE) realisees a la demande de l’OCDE, de la CNUCED et du PNUD. Sont examines le Bresil, le Chili, la Chine, la Coree, Cuba, le Guatemala, le Honduras, Israel, le Kenya, le Mexique, le Nicaragua, le Pakistan, le Panama, la Republique dominicaine, la Republique tcheque, la Thailande et le Vietnam. Il s’agit de mettre en evidence les determinants de la demande de B&SE, de souligner les themes et enseignements communs qui se degagent des marches nationaux de B&SE et d’attirer l’attention sur les principaux liens entre les politiques applicables aux echanges, a l’environnement et au developpement. Ce travail vise aussi a diffuser les connaissances et donnees d’experience, dans le domaine commercial et environnemental, pour que la liberalisation des echanges de B&SE soit mise a profit par tous les pays, developpes ou en developpement.

Biens et services environnementaux

En 2003, le Groupe de travail conjoint sur les echanges et l’environnement (GTCEE) de l’OCDE a demande que sept etudes nationales soient consacrees aux avantages tires de la liberalisation des echanges de biens et services environnementaux par des pays recemment admis a l’OCDE, en qualite de Membres a part entiere ou d’observateurs. Dans le meme temps, des travaux comparables ont ete entrepris par la CNUCED (six etudes) et le PNUD (quatre etudes). Le present document passe en revue les 17 etudes realisees sous l’egide des trois organisations internationales dans les cas suivants : Bresil, Chili, Chine, Coree, Cuba, Guatemala, Honduras, Israel, Kenya, Mexique, Nicaragua, Pakistan, Panama, Republique dominicaine, Republique tcheque, Thailande et Vietnam.

Addressing Market-Access Concerns of Developing Countries arising from Environmental and Health Requirements

This report represents the stock-taking of the lessons learned from a series of twenty OECD case studies which examined specific market access problems arising from environmental and health requirements faced by developing country exporters. Together with a series of UNCTAD case studies and the experiences exchanged at an OECD Global Forum on Trade workshop, held in New Delhi in November 2002, the focus is on the approaches that contributed to addressing the market access difficulties. These are divided into two sections: first, those addressing information flows and capacity building needs of developing-country exporters, undertaken both by governments and non-governmental organisations; and then the procedures in developing, implementing and reviewing regulations and standards. While covering a range of natural resource-based exports and manufactures and one traded service in key OECD import markets, no generalisation can be drawn regarding the scale of the market-access problems created by environmental and health requirements.