Climate policies as a hedge against the uncertainty on future oil supply

Julie Rozenberg, Stephane Hallegatte, Adrien Vogt-Schilb, Olivier Sassi, Céline Guivarch, Henri Waisman and Jean Charles Hourcade ()
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Julie Rozenberg: CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique
Adrien Vogt-Schilb: CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique
Olivier Sassi: CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique
Henri Waisman: CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique
Jean Charles Hourcade: CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique

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Abstract: Despite the inextricable link between oil scarcity and climate change, the interplay between these two issues is paradoxically an underworked area. This article uses a global energy-economy model to address the link between future oil supply and climate change and assesses in a common framework both the costs of climate policies and oil scarcity. It shows that, in the context of a limited and uncertain amount of ultimately recoverable oil resources, climate policies reduce the world vulnerability to peak oil. Climate policies, therefore, appear as a hedging strategy against the uncertainty on oil resources, in addition to their main aim of avoiding dangerous climate change. This co-benefit is estimated at the net present value of US$11,500 billion. Eventually, reducing the risk of future economic losses due to oil scarcity may appear as a significant side-benefit of climate policies to many decision-makers.

Keywords: Climate policies; peak oil; hedge; cost; uncertainty; politiques climatiques; pic pétrolier; protection; coût; incertitude (search for similar items in EconPapers)
Date: 2010-04
New Economics Papers: this item is included in nep-agr, nep-cwa, nep-ene, nep-env and nep-rmg
Note: View the original document on HAL open archive server: https://hal.science/hal-00866449v1
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Citations: View citations in EconPapers (30)

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Related works:
Working Paper: Climate policies as a hedge against the uncertainty on future oil supply (2011)
Working Paper: Climate policies as a hedge against the uncertainty on future oil supply (2010)
Working Paper: Climate policies as a hedge against the uncertainty on future oil supply (2010)
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