Inertia in Infrastructure Development : Some Analytical Aspects, and Reasons for Inefficient Infrastructure Choices
This paper uses some simple conceptual models to draw out various implications of infrastructure investments with long lifetimes for the ability of societies to reduce their future greenhouse gas emissions. A broad range of such investments, relate...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100507102851 http://hdl.handle.net/10986/3781 |
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okr-10986-37812021-04-23T14:02:12Z Inertia in Infrastructure Development : Some Analytical Aspects, and Reasons for Inefficient Infrastructure Choices Strand, Jon ABATEMENT AGGREGATE DEMAND APPROACH ATMOSPHERE ATMOSPHERIC CONCENTRATIONS AVAILABILITY BALANCE CALCULATION CAPITAL GAINS CARBON CARBON CAPTURE CARBON CONCENTRATIONS CARBON ECONOMY CARBON EMISSIONS CARBON TAXES CL CLIMATE CLIMATE CATASTROPHE CLIMATE CATASTROPHES CLIMATE CHANGE CLIMATE CHANGE MITIGATION CLIMATE CHANGE SCIENCE PROGRAM CLIMATE DAMAGE CLIMATE DAMAGES CLIMATE EFFECTS CLIMATE POLICY CO2 COAL CONSTANT EMISSIONS COOLING SYSTEMS COSTS OF EMISSIONS CUMULATIVE EMISSIONS DISCOUNT FACTOR DISCOUNT RATE DISCOUNT RATES DISTRIBUTION SYSTEMS DOMESTIC PETROLEUM ECONOMIC THEORY ECONOMICS OF CLIMATE CHANGE ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY ELECTRICITY GENERATION EMISSION EMISSION LEVELS EMISSIONS EMISSIONS INTENSITIES EMISSIONS PRICES EMISSIONS TAXES ENERGY CONSUMPTION ENERGY COSTS ENERGY DEMAND ENERGY ECONOMICS ENERGY GOODS ENERGY INPUT ENERGY INTENSITY ENERGY INTENSIVE ENERGY PRICE ENERGY PRICES ENERGY PRODUCTION ENERGY PRODUCTION FACILITIES ENERGY REQUIREMENT ENERGY SUBSIDIES ENERGY SUPPLY ENERGY TECHNOLOGIES ENERGY TECHNOLOGY ENERGY USE FEASIBILITY FOSSIL FOSSIL ENERGY FOSSIL ENERGY REQUIREMENT FOSSIL FUEL FOSSIL FUEL CONSUMPTION FOSSIL FUELS FUEL FUEL DEMAND FUEL PRICE FUEL PRICE INCREASES FUEL PRICES GHG GLOBAL EMISSIONS GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS HIGH ENERGY HIGHWAY HIGHWAY SYSTEM INCOME INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE INVESTMENT INTEREST RATE INTERNATIONAL FINANCIAL INSTITUTIONS INVESTMENT DECISIONS LOW-CARBON MARGINAL COST MONETARY FUND MOTOR VEHICLES PETROLEUM PRICE POWER POWER PLANT POWER PLANTS PRICE CHANGE PRICE CHANGES PRICE INCREASE PRIVATE TRANSPORT PROBABILITY DISTRIBUTION PURE ENERGY RENEWABLE SOURCES RETROFIT OPTION RETROFITTING RISK AVERSION ROAD SCENARIOS STOCHASTIC PROCESS SUBSTITUTION TRANSPORT TRANSPORT SERVICES TRUE UTILITIES UTILITY FUNCTION UTILITY FUNCTIONS VALUE OF ENERGY VEHICLE VEHICLE TYPES VEHICLES This paper uses some simple conceptual models to draw out various implications of infrastructure investments with long lifetimes for the ability of societies to reduce their future greenhouse gas emissions. A broad range of such investments, related both to energy supply and demand systems, may commit societies to high and persistent levels of greenhouse gas emissions over time, that are difficult and costly to change once the investments have been sunk. There are, the author argues, several strong reasons to expect the greenhouse gas emissions embedded in such investments to be excessive. One is that infrastructure investment decisions tend to be made on the basis of (current and expected future) emissions prices that do not fully reflect the social costs of greenhouse gas emissions resulting from the investments. A second, related, set of reasons are excessive discounting of future project costs and benefits including future climate damages, and a too-short planning horizon for infrastructure investors. These issues are illustrated for two alternative cases of climate damages, namely with the possibility of a "climate catastrophe," and with a sustained increase in the marginal global damage cost of greenhouse gas emissions. 2012-03-19T18:39:42Z 2012-03-19T18:39:42Z 2010-05-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100507102851 http://hdl.handle.net/10986/3781 English Policy Research working paper ; no. WPS 5295 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ABATEMENT AGGREGATE DEMAND APPROACH ATMOSPHERE ATMOSPHERIC CONCENTRATIONS AVAILABILITY BALANCE CALCULATION CAPITAL GAINS CARBON CARBON CAPTURE CARBON CONCENTRATIONS CARBON ECONOMY CARBON EMISSIONS CARBON TAXES CL CLIMATE CLIMATE CATASTROPHE CLIMATE CATASTROPHES CLIMATE CHANGE CLIMATE CHANGE MITIGATION CLIMATE CHANGE SCIENCE PROGRAM CLIMATE DAMAGE CLIMATE DAMAGES CLIMATE EFFECTS CLIMATE POLICY CO2 COAL CONSTANT EMISSIONS COOLING SYSTEMS COSTS OF EMISSIONS CUMULATIVE EMISSIONS DISCOUNT FACTOR DISCOUNT RATE DISCOUNT RATES DISTRIBUTION SYSTEMS DOMESTIC PETROLEUM ECONOMIC THEORY ECONOMICS OF CLIMATE CHANGE ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY ELECTRICITY GENERATION EMISSION EMISSION LEVELS EMISSIONS EMISSIONS INTENSITIES EMISSIONS PRICES EMISSIONS TAXES ENERGY CONSUMPTION ENERGY COSTS ENERGY DEMAND ENERGY ECONOMICS ENERGY GOODS ENERGY INPUT ENERGY INTENSITY ENERGY INTENSIVE ENERGY PRICE ENERGY PRICES ENERGY PRODUCTION ENERGY PRODUCTION FACILITIES ENERGY REQUIREMENT ENERGY SUBSIDIES ENERGY SUPPLY ENERGY TECHNOLOGIES ENERGY TECHNOLOGY ENERGY USE FEASIBILITY FOSSIL FOSSIL ENERGY FOSSIL ENERGY REQUIREMENT FOSSIL FUEL FOSSIL FUEL CONSUMPTION FOSSIL FUELS FUEL FUEL DEMAND FUEL PRICE FUEL PRICE INCREASES FUEL PRICES GHG GLOBAL EMISSIONS GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS HIGH ENERGY HIGHWAY HIGHWAY SYSTEM INCOME INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE INVESTMENT INTEREST RATE INTERNATIONAL FINANCIAL INSTITUTIONS INVESTMENT DECISIONS LOW-CARBON MARGINAL COST MONETARY FUND MOTOR VEHICLES PETROLEUM PRICE POWER POWER PLANT POWER PLANTS PRICE CHANGE PRICE CHANGES PRICE INCREASE PRIVATE TRANSPORT PROBABILITY DISTRIBUTION PURE ENERGY RENEWABLE SOURCES RETROFIT OPTION RETROFITTING RISK AVERSION ROAD SCENARIOS STOCHASTIC PROCESS SUBSTITUTION TRANSPORT TRANSPORT SERVICES TRUE UTILITIES UTILITY FUNCTION UTILITY FUNCTIONS VALUE OF ENERGY VEHICLE VEHICLE TYPES VEHICLES |
| spellingShingle |
ABATEMENT AGGREGATE DEMAND APPROACH ATMOSPHERE ATMOSPHERIC CONCENTRATIONS AVAILABILITY BALANCE CALCULATION CAPITAL GAINS CARBON CARBON CAPTURE CARBON CONCENTRATIONS CARBON ECONOMY CARBON EMISSIONS CARBON TAXES CL CLIMATE CLIMATE CATASTROPHE CLIMATE CATASTROPHES CLIMATE CHANGE CLIMATE CHANGE MITIGATION CLIMATE CHANGE SCIENCE PROGRAM CLIMATE DAMAGE CLIMATE DAMAGES CLIMATE EFFECTS CLIMATE POLICY CO2 COAL CONSTANT EMISSIONS COOLING SYSTEMS COSTS OF EMISSIONS CUMULATIVE EMISSIONS DISCOUNT FACTOR DISCOUNT RATE DISCOUNT RATES DISTRIBUTION SYSTEMS DOMESTIC PETROLEUM ECONOMIC THEORY ECONOMICS OF CLIMATE CHANGE ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY ELECTRICITY GENERATION EMISSION EMISSION LEVELS EMISSIONS EMISSIONS INTENSITIES EMISSIONS PRICES EMISSIONS TAXES ENERGY CONSUMPTION ENERGY COSTS ENERGY DEMAND ENERGY ECONOMICS ENERGY GOODS ENERGY INPUT ENERGY INTENSITY ENERGY INTENSIVE ENERGY PRICE ENERGY PRICES ENERGY PRODUCTION ENERGY PRODUCTION FACILITIES ENERGY REQUIREMENT ENERGY SUBSIDIES ENERGY SUPPLY ENERGY TECHNOLOGIES ENERGY TECHNOLOGY ENERGY USE FEASIBILITY FOSSIL FOSSIL ENERGY FOSSIL ENERGY REQUIREMENT FOSSIL FUEL FOSSIL FUEL CONSUMPTION FOSSIL FUELS FUEL FUEL DEMAND FUEL PRICE FUEL PRICE INCREASES FUEL PRICES GHG GLOBAL EMISSIONS GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS HIGH ENERGY HIGHWAY HIGHWAY SYSTEM INCOME INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE INVESTMENT INTEREST RATE INTERNATIONAL FINANCIAL INSTITUTIONS INVESTMENT DECISIONS LOW-CARBON MARGINAL COST MONETARY FUND MOTOR VEHICLES PETROLEUM PRICE POWER POWER PLANT POWER PLANTS PRICE CHANGE PRICE CHANGES PRICE INCREASE PRIVATE TRANSPORT PROBABILITY DISTRIBUTION PURE ENERGY RENEWABLE SOURCES RETROFIT OPTION RETROFITTING RISK AVERSION ROAD SCENARIOS STOCHASTIC PROCESS SUBSTITUTION TRANSPORT TRANSPORT SERVICES TRUE UTILITIES UTILITY FUNCTION UTILITY FUNCTIONS VALUE OF ENERGY VEHICLE VEHICLE TYPES VEHICLES Strand, Jon Inertia in Infrastructure Development : Some Analytical Aspects, and Reasons for Inefficient Infrastructure Choices |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5295 |
| description |
This paper uses some simple conceptual
models to draw out various implications of infrastructure
investments with long lifetimes for the ability of societies
to reduce their future greenhouse gas emissions. A broad
range of such investments, related both to energy supply and
demand systems, may commit societies to high and persistent
levels of greenhouse gas emissions over time, that are
difficult and costly to change once the investments have
been sunk. There are, the author argues, several strong
reasons to expect the greenhouse gas emissions embedded in
such investments to be excessive. One is that infrastructure
investment decisions tend to be made on the basis of
(current and expected future) emissions prices that do not
fully reflect the social costs of greenhouse gas emissions
resulting from the investments. A second, related, set of
reasons are excessive discounting of future project costs
and benefits including future climate damages, and a
too-short planning horizon for infrastructure investors.
These issues are illustrated for two alternative cases of
climate damages, namely with the possibility of a
"climate catastrophe," and with a sustained
increase in the marginal global damage cost of greenhouse
gas emissions. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Strand, Jon |
| author_facet |
Strand, Jon |
| author_sort |
Strand, Jon |
| title |
Inertia in Infrastructure Development : Some Analytical Aspects, and Reasons for Inefficient Infrastructure Choices |
| title_short |
Inertia in Infrastructure Development : Some Analytical Aspects, and Reasons for Inefficient Infrastructure Choices |
| title_full |
Inertia in Infrastructure Development : Some Analytical Aspects, and Reasons for Inefficient Infrastructure Choices |
| title_fullStr |
Inertia in Infrastructure Development : Some Analytical Aspects, and Reasons for Inefficient Infrastructure Choices |
| title_full_unstemmed |
Inertia in Infrastructure Development : Some Analytical Aspects, and Reasons for Inefficient Infrastructure Choices |
| title_sort |
inertia in infrastructure development : some analytical aspects, and reasons for inefficient infrastructure choices |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100507102851 http://hdl.handle.net/10986/3781 |
| _version_ |
1764388308961460224 |