{"type":"script","doc_desc":{"producers":[{"name":"Reproducibility WBG","abbr":"DIME","affiliation":"World Bank - Development Impact Department","role":"Verification and preparation of metadata"}],"prod_date":"2024-11-21","version":"1"},"project_desc":{"authoring_entity":[{"name":"Adam Michael Bauer","email":"adammb4@illinois.edu","affiliation":"University of Illinois Urbana-Champaign"},{"name":"Stephane Hallegatte","email":"shallegatte@worldbank.org. ","affiliation":"World Bank"},{"email":"fmcisaac@worldbank.org ","name":"Florent McIsaac","affiliation":"World Bank"}],"output":[{"type":"Working Paper","title":"The Timing versus Allocation Trade-off in Politically Constrained Climate Policies","authors":"Adam Michael Bauer, Stephane Hallegatte, Florent McIsaac","description":"Policy Research Working Paper (PRWP) 10971","uri":"http:\/\/documents.worldbank.org\/curated\/en\/099144211072445400\/IDU166da20581c28314e5619c6512a33b683eb58","doi":"https:\/\/doi.org\/10.1596\/1813-9450-10971"}],"datasets":[{"uri":"https:\/\/doi.org\/10.5194\/essd-15-5301-2023","name":"Global Carbon Budget 2023","note":"Source: Earth System Science Data\nLocated at: \\codes\\data\\cal\nFilenames: ar6_17_glob.csv, ar6_17_secs.csv\nIndividual numbers used in the simulations can be found in the files for each simulation. Carbon budget values have been extracted by the authors from the paper linked in the data URL.","access_type":"Included in the reproducibility package"},{"uri":"http:\/\/documents.worldbank.org\/curated\/en\/099829103282438373\/IDU1f2d86d77127091490d1a6df1dc342f15d10b","name":"Marginal investment cost data","note":"Source: How Delayed Learning about Climate Uncertainty Impacts Decarbonization Investment Strategies. Policy Research working paper WPS 10743\nLocated at: \\codes\\data\\cal\nFilenames: ar6_17_glob.csv, ar6_17_secs.csv\nIndividual numbers used in the simulations can be found in the files for each simulation. Marginal investment cost have been extracted by the authors from the paper linked in the data URL.","access_type":"Included in the reproducibility package"},{"name":"Capital depreciation rates","uri":"https:\/\/www.osti.gov\/etdeweb\/biblio\/20962174","note":"Source: Philibert, C. Technology penetration and capital stock turnover. Lessons from IEA scenario analysis. France: N. p., 2007. Web.\nLocated at: \\codes\\data\\cal\nFilenames: ar6_17_glob.csv, ar6_17_secs.csv\nIndividual numbers used in the simulations can be found in the files for each simulation. Capital depreciation rates have been extracted by the authors from the paper linked in the data URL.","access_type":"Included in the reproducibility package"},{"name":"Social discount rate data","note":"Source: Drupp, Moritz A., Mark C. Freeman, Ben Groom, and Frikk Nesje. 2018. \"Discounting Disentangled.\" American Economic Journal: Economic Policy, 10 (4): 109\u201334.\nLocated at: \\codes\\data\\cal\nFilenames: ar6_17_glob.csv, ar6_17_secs.csv\n\nIndividual numbers used in the simulations can be found in the files for each simulation. Social discount rate data and median estimates have been extracted by the authors from the paper linked in the data URL.","uri":" https:\/\/doi.org\/10.1257\/pol.20160240","access_type":"Included in the reproducibility package"},{"name":"Transient climate response to emissions data","note":"Source: Dvorak, M.T., Armour, K.C., Frierson, D.M.W. et al. Estimating the timing of geophysical commitment to 1.5 and 2.0\u2009\u00b0C of global warming. Nat. Clim. Chang. 12, 547\u2013552 (2022)\nLocated at: \\codes\\data\\cal\nFilenames: ar6_17_glob.csv, ar6_17_secs.csv\n\nIndividual numbers used in the simulations can be found in the files for each simulation. Transient climate response to emissions and median estimates have been extracted by the authors from the paper linked in the data URL.","access_type":"Included in the reproducibility package","uri":"https:\/\/doi.org\/10.1038\/s41558-022-01372-y"}],"software":[{"name":"Python ","version":"3.11"}],"scripts":[{"file_name":"RR_WLD_2024_255","zip_package":"RR_WLD_2024_255","title":"Reproducibility package (code and data) for The Timing versus Allocation Trade-off in Politically Constrained Climate Policies","date":"2024-11","dependencies":"All dependencies and their versions are listed in the file \"pol_econ.yml\".","notes":"Computational reproducibility verified by Development Impact (DIME) Analytics team, World Bank."}],"title_statement":{"idno":"RR_WLD_2024_225","title":"Reproducibility package for The Timing versus Allocation Trade-off in Politically Constrained Climate Policies"},"acknowledgment_statement":"The authors thank Carolyn Fischer, Joe Pryor, and seminar participants at the World Bank Group for helpful discussions related to this work. The authors acknowledge financial support from the Climate Support Facility of the\nWorld Bank. AMB acknowledges financial support from a National Science Foundation Graduate Research Fellowship grant No. DGE 21-46756. The views expressed in this paper are the sole responsibility of the authors. They do not necessarily reflect the views of the World Bank, its executive directors, or the countries they represent. All remaining errors are the sole responsibility of the authors","production_date":"2024-11","abstract":"When leaders face political economy constraints, is it best to delay all decarbonization initiatives until a sectorally coordinated strategy can be implemented, or is it preferable to implement an approach where sectors\u2019 decarbonization strategies are uncoordinated? This question underscores a crucial trade-off\u2014here coined the \u201ctiming versus allocation\u201d trade-off\u2014for politically constrained climate policymakers: whether to sacrifice the optimal timing of climate policies to preserve the optimal allocation of emissions across economic sectors, or to preserve the optimal timing of abatement investment at the expense of emissions allocation across sectors. This paper systematically explores this trade-off by presenting a modeling framework that elucidates the economic implications of various sub-optimal policy approaches to decarbonization that involve relaxing or delaying efforts in a subset of sectors or economy-wide. The analysis shows that the cost difference between an economy-wide, coordinated decarbonization strategy and an uncoordinated approach with heterogeneous carbon prices is smaller than the cost of delaying action and implementing a coordinated policy in the future. This finding implies that it is preferable to implement some policy in each sector, insofar as this is politically feasible, with less politically challenged sectors compensating with a marginal increase in policy ambition. Furthermore, the paper highlights that sectors with high annual emission rates, such as energy, are more costly to delay in comparison to their mid- to low-emission counterparts, such as industry, despite the latter being nominally more expensive to decarbonize.","geographic_units":[{"name":"World","code":"WLD"}],"keywords":[{"name":"green investment"},{"name":"political economy"},{"name":"climate policy"},{"name":"second-best policies"},{"name":"adjustment costs"}],"topics":[{"id":"P18","vocabulary":"Journal of Economic Literature","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","name":"Energy \u2022 Environment"},{"id":"Q52","vocabulary":"Journal of Economic Literature","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","name":"Pollution Control Adoption and Costs \u2022 Distributional Effects \u2022 Employment Effects"},{"id":"Q54","vocabulary":"Journal of Economic Literature","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","name":"Climate \u2022 Natural Disasters and Their Management \u2022 Global Warming"},{"id":"Q58","vocabulary":"Journal of Economic Literature","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","name":"Government Policy"}],"data_statement":"All data sources are publicly available and included in the reproducibility package.","repository_uri":[{"name":"Reproducible Research Repository (World Bank) ","uri":"https:\/\/reproducibility.worldbank.org"},{"uri":"https:\/\/github.com\/adam-bauer-34\/BHM-pol-econ-reprod","type":"Github","name":"BHM-pol-econ-reprod"}],"reproduction_instructions":"To successfully replicate this package, new users must follow these steps: a. replicating the programming environment using the file pol_econ.yml ; b. running the main run_all.sh in Git Bash.","technology_requirements":"Runtime: 15 minutes","technology_environment":"Paper exhibits were reproduced on a computer with the following specifications:\n\u2022 OS: Windows 10 Enterprise, version 22H2\n\u2022 Processor: Intel(R) Xeon(R) Gold 6132 CPU @ 2.60GHz 2.60 GHz (2 processors)\n\u2022 Memory available: 128 GB\n\u2022 Software version: Python 3.11, Gitbash 2.47.0 ","disclaimer":"The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development\/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.","license":[{"name":"Modified BSD3 ","uri":"https:\/\/opensource.org\/license\/bsd-3-clause\/"}],"contacts":[{"name":"Adam Michael Bauer","affiliation":"University of Illinois Urbana-Champaign","email":"adammb4@illinois.edu"},{"name":"Reproducibility WBG ","affiliation":"World Bank","email":"reproducibility@worldbank.org"}]},"tags":[{"tag":"DOI"},{"tag":"Open code"},{"tag":"Open data"}],"schematype":"script"}