15 National and Sub-National Policies and Institutions

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15 National and Sub-National Policies and Institutions National and Sub-national 15 Policies and Institutions Coordinating Lead Authors: Eswaran Somanathan (India), Thomas Sterner (Sweden), Taishi Sugiyama (Japan) Lead Authors: Donald Chimanikire (Zimbabwe), Navroz K. Dubash (India), Joseph Kow Essandoh-Yeddu (Ghana), Solomone Fifita (Tonga / Fiji), Lawrence Goulder (USA), Adam Jaffe (USA / New Zealand), Xavier Labandeira (Spain), Shunsuke Managi (Japan), Catherine Mitchell (UK), Juan Pablo Montero (Chile), Fei Teng (China), Tomasz Zylicz (Poland) Contributing Authors: Arild Angelsen (Norway), Kazumasu Aoki (Japan), Kenji Asano (Japan), Michele Betsill (USA), Rishikesh Ram Bhandary (Nepal / USA), Nils-Axel Braathen (France / Norway), Harriet Bulkeley (UK), Dallas Burtraw (USA), Ann Carlson (USA), Luis Gomez-Echeverri (Austria / Colombia), Erik Haites (Canada), Frank Jotzo (Germany / Australia), Milind Kandlikar (India / Canada), Osamu Kimura (Japan), Gunnar Kohlin (Sweden), Hidenori Komatsu (Japan), Andrew Marquard (South Africa), Michael Mehling (Germany / USA), Duane Muller (USA), Luis Mundaca (Chile / Sweden), Michael Pahle (Germany), Matthew Paterson (Canada), Charles Roger (UK / Canada), Kristin Seyboth (USA), Elisheba Spiller (USA), Christoph von Stechow (Germany), Paul Watkiss (UK), Harald Winkler (South Africa), Bridget Woodman (UK) Review Editors: Martin Jänicke (Germany), Ronaldo Seroa da Motta (Brazil), Nadir Mohamed Awad Suliman (Sudan) Chapter Science Assistant: Rishikesh Ram Bhandary (Nepal / USA) 1141 National and Sub-national Policies and Institutions Chapter 15 This chapter should be cited as: Somanathan E., T. Sterner, T. Sugiyama, D. Chimanikire, N. K. Dubash, J. Essandoh-Yeddu, S. Fifita, L. Goulder, A. Jaffe, X. Labandeira, S. Managi, C. Mitchell, J. P. Montero, F. Teng, and T. Zylicz, 2014: National and Sub-national Policies and Institu- tions. In: Climate Change 2014: Mitigation of Climate Change. Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Edenhofer, O., R. Pichs-Madruga, Y. Sokona, E. Farahani, S. Kadner, K. Seyboth, A. Adler, I. Baum, S. Brunner, P. Eickemeier, B. Kriemann, J. Savolainen, S. Schlömer, C. von Stechow, T. 15 Zwickel and J.C. Minx (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA. 1142 Chapter 15 National and Sub-national Policies and Institutions Contents Executive Summary � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1147 15 15�1 Introduction � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1149 15�2 Institutions and governance � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1149 15�2�1 Why institutions and governance matter � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1149 15�2�2 Increase in government institutionalization of climate mitigation actions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1150 15�2�3 Climate change mitigation through sectoral action � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1151 15�2�4 Co-Benefits as a driver of mitigation action � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1152 15�2�5 Sub-national climate action and interaction across levels of governance � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1152 15�2�6 Drivers of national and sub-national climate action � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1154 15�2�7 Summary of institutions and governance � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1154 15�3 Characteristics and classification of policy instruments and packages � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1155 15�3�1 Economic instruments � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1155 15�3�2 Regulatory approaches � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1155 15�3�3 Information policies � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1156 15�3�4 Government provision of public goods and services and procurement � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1156 15�3�5 Voluntary actions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1156 15�4 Approaches and tools used to evaluate policies and institutions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1156 15�4�1 Evaluation criteria � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1156 15�4�2 Approaches to evaluation � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1156 15�5 Assessment of the performance of policies and measures, including their policy design, in developed and developing countries taking into account development level and capacity � 1157 15�5�1 Overview of policy implementation � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1157 1143 National and Sub-national Policies and Institutions Chapter 15 15�5�2 Taxes, charges, and subsidy removal � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1159 15.5.2.1 Overview ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 1159 15.5.2.2 Environmental effectiveness and efficiency ������������������������������������������������������������������������������������������������������������������� 1160 15.5.2.3 Distributional incidence and feasibility ��������������������������������������������������������������������������������������������������������������������������� 1161 15.5.2.4 Design issues: exemptions, revenue recycling, border adjustments . 1162 15 15�5�3 Emissions trading � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1163 15.5.3.1 Overview of emissions trading schemes ����������������������������������������������������������������������������������������������������������������������� 1163 15.5.3.2 Has emissions trading worked? ������������������������������������������������������������������������������������������������������������������������������������������� 1163 15.5.3.3 Sector coverage and scope of the cap ����������������������������������������������������������������������������������������������������������������������������� 1165 15.5.3.4 Setting the level of the cap ��������������������������������������������������������������������������������������������������������������������������������������������������� 1165 15.5.3.5 Allocations ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 1166 15.5.3.6 Linking of schemes ��������������������������������������������������������������������������������������������������������������������������������������������������������������������� 1166 15.5.3.7 Other design issues: banking, offsets, leakage, price volatility and market power ����������������������������������� 1166 15.5.3.8 Choice between taxes and emissions trading ������������������������������������������������������������������������������������������������������������� 1167 15�5�4 Regulatory approaches � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 1168 15.5.4.1 Overview of the implementation of regulatory approaches ������������������������������������������������������������������������������� 1168 15.5.4.2 Environmental effectiveness of energy efficiency regulations ����������������������������������������������������������������������������� 1168 15.5.4.3 Cost effectiveness of energy efficiency regulations ��������������������������������������������������������������������������������������������������� 1169 15�5�5 Information measures � � � � � � � � � � � � � � � � � � � �
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