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ch 6, 12 cell clean up
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content/06-inequality/inequality.ipynb

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{
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"cell_type": "markdown",
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"metadata": {
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"tags": [
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"remove_cell"
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"metadata": {},
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"![Alternative forms of measurement](alt_measure.png)"
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content/12-environmental/KuznetsHypothesis-Copy1.ipynb

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{
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"cells": [
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{
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"cell_type": "markdown",
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"id": "39a04df2",
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"metadata": {},
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"source": [
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"# Environmental Kuznets Curve Hypothesis\n",
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"\n",
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"The Environmental Kuznets curve hypothesis that the economic development of a nation is associated with a downward-facing U-shape. The Y-axis is in terms of the level of environmental degradation (e.g pollution, water quality, deforestation. The X-axis would be the GDP/capita. The idea is that the environmental degradation worsens, until a certain level of income, and after which it gets better. In the US this could be seen in terms of air or water quality, where the skies or rivers were very polluted in the 1960s, until the Clean Air Act and Clean Water Act were passed and Air Quality and Water Quality improved. Another motivation for the downward slope would be the idea that at some point a wealthier society demands environmental improvements. \n",
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"However - could this hold for the potentially most important Pollutant C02, the main driver of anthropogenic climate change. Controversially the impacts of global CO2 pollution are not experienced locally, but are experienced as global effects. So it is not clear whether the Environmental Kuznets hypothesis will hold. \n",
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"\n",
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"Today, we'll look to build an C02 Kuznets Curve (as below) for an *association* between the amount of CO2 emitted per capita (t/CO2) and the growing GDP per capita (USD). This dataset is collected from Our World in Data, a great source of all sorts of data types!\n",
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"\n"
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]
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},
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{
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"cell_type": "code",
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"execution_count": 3,
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"id": "5b1b7b3c",
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"metadata": {
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"tags": [
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"remove_cell"
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"remove-cell"
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"%matplotlib inline"
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]
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{
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"cell_type": "markdown",
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"id": "39a04df2",
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"metadata": {},
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"source": [
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"# Environmental Kuznets Curve Hypothesis\n",
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"\n",
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"The Environmental Kuznets curve hypothesis that the economic development of a nation is associated with a downward-facing U-shape. The Y-axis is in terms of the level of environmental degradation (e.g pollution, water quality, deforestation. The X-axis would be the GDP/capita. The idea is that the environmental degradation worsens, until a certain level of income, and after which it gets better. In the US this could be seen in terms of air or water quality, where the skies or rivers were very polluted in the 1960s, until the Clean Air Act and Clean Water Act were passed and Air Quality and Water Quality improved. Another motivation for the downward slope would be the idea that at some point a wealthier society demands environmental improvements. \n",
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"However - could this hold for the potentially most important Pollutant C02, the main driver of anthropogenic climate change. Controversially the impacts of global CO2 pollution are not experienced locally, but are experienced as global effects. So it is not clear whether the Environmental Kuznets hypothesis will hold. \n",
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"\n",
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"Today, we'll look to build an C02 Kuznets Curve (as below) for an *association* between the amount of CO2 emitted per capita (t/CO2) and the growing GDP per capita (USD). This dataset is collected from Our World in Data, a great source of all sorts of data types!\n",
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"\n"
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]
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},
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{
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"cell_type": "markdown",
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"id": "2c6d3432",

content/12-environmental/KuznetsHypothesis.ipynb

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content/12-environmental/MAC.ipynb

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"\n",
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"![SampleMACC_Nov23.png](SampleMACC_Nov23.png)\n",
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"\n",
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"In this example, the firm has a few activities with a low cost of abatement, and then a few with higher cost of abatement. It would make sense for the firm to start with the lowest cost of abatement first.\n",
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" \n",
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"\n",
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"\n"
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"In this example, the firm has a few activities with a low cost of abatement, and then a few with higher cost of abatement. It would make sense for the firm to start with the lowest cost of abatement first."
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{
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"\n",
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"Earlier, we described the effect of introducing a tax on the emissions ‘market’ and observed how rational decision-makers in individual firms react by constructing their own MAC curves. Now, let’s say that the government has set an emission reduction target but has not decided on a specific tax rate yet. How could they guarantee that the target is met? By taking the cumulative sum of the abatement potential of each intervention they expect to take place at a given rate, they should keep doing so until their sum equals the emission reduction target. From there, they observe the marginal abatement cost of the last intervention they added to the sum. This could be a way to set the emissions tax rate. Here's how a simplified version of the MAC could look:\n",
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"\n",
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"![image.png](image.png)\n",
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"\n"
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"![MAC simplified](image.png)"
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