Zhang, ZhongXiang (1999): The design and implementation of an international greenhouse gas emissions trading scheme.
Download (142Kb) | Preview
The inclusion of emissions trading in the Kyoto Protocol reflects an important decision to address climate change issues through flexible market mechanisms. In this paper, we address a number of policy issues that must be considered in designing and implementing an international greenhouse gas (GHG) emissions trading scheme. These include how much of a Party’s assigned amount of GHG emissions can be traded internationally; emissions trading models; competitiveness concerns in the allocation of emissions permits; banking and borrowing; the issue of liability for non-compliance; enlarging emissions trading system; and bubbles. Although our focus is exclusively on emissions trading, we discuss its relationship with the clean development mechanism, joint implementation and bubbles wherever necessary. By providing some new insights, the paper aims to contribute to the design and operationlization of an international emissions trading scheme.
|Item Type:||MPRA Paper|
|Original Title:||The design and implementation of an international greenhouse gas emissions trading scheme|
|Keywords:||Bubbles; carbon tax; clean development mechanism; emissions trading; greenhouse gases; international competitiveness; joint implementation; Kyoto Protocol|
|Subjects:||K - Law and Economics > K3 - Other Substantive Areas of Law > K32 - Environmental, Health, and Safety Law
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q52 - Pollution Control Adoption Costs; Distributional Effects; Employment Effects
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters; Global Warming
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy
|Depositing User:||ZhongXiang Zhang|
|Date Deposited:||28. Jan 2009 03:26|
|Last Modified:||12. Feb 2013 21:34|
Bill, S. (1997), European Commission’s Experience in Designing Environmental Taxation for Energy Products, Presented at the European Union Advanced Study Course on Goals and Instruments for the Achievement of Global Warming Mitigation in Europe, 20-26 July, Berlin.
CCAP (1998), Setting Priorities for the Implementation of the Kyoto Agreement: Making Flexibility Mechanisms Work, Center for Clear Air Policy (CCAP), Washington, DC.
Cline, W.R. (1992), The Economics of Global Warming, Institute of Interna¬tional Economics, Washington, DC.
Cramton, P. and S. Kerr (1998), Tradeable Carbon Allowance Auctions: How and Why to Auction, University of Maryland at College Park.
Ellerman, A.D., Schmalensee, R., Joskow, P.L., Montero, J.P. and E.M. Bailey (1997), Emissions Trading under the U.S. Acid Rain Program: Evaluation of Compliance Costs and Allowance Market Performance, Center for Energy and Environmental Policy Research, Massachusetts Institute of Technology.
Environmental Defense Fund (1998), Cooperative Mechanisms under the Kyoto Protocol, New York.
Fischer, C., Kerr, S. and M. Toman (1998), Using Emissions Trading to Regulate Greenhouse Gas Emissions: An Overview of Policy Design and Implementation Issues, Resources for the Future, Washington, DC.
Goldberg, D.M., Porter, S., LaCasta, N. and E. Hillman (1998), Responsibility for Non-compliance under the Kyoto Protocol’s Mechanisms for Cooperative Implementation, Center for International Environmental Law, Washington, DC.
Goulder, L.H. (1995), Environmental Taxation and the Double Dividend: A Reader’s Guide, International Tax and Public Finance, Vol. 2, No. 2, pp. 157-183.
Grubb, M., Michaelowa, A., Swift, B., Tietenberg, T. and Z.X. Zhang (1998), International Rules for Greenhouse Gas Emissions Trading: Defining the Principles, Modalities, Rules and Guidelines for Verification, Reporting and Accountability, United Nations Conference on Trade and Development, Geneva.
Haites, E. (1998), International Emissions Trading and Compliance with Greenhouse Gas Emissions Limitation Commitments, Margaree Consultants Inc., Toronto, Canada.
Haites, E. and M. Aslam (2000), Kyoto Mechanisms and Global Climate Change: Coordination across Mechanisms and with Domestic Policy, Report for Pew Center on Global Climate Change.
Hargrave, T. (1998), US Carbon Emissions Trading: Description of an Upstream Approach, Center for Clear Air Policy, Washington, DC.
IPCC (1996), Climate Change 1995: Economic and Social Dimensions of Climate Change, Contribution of Working Group III to the Second Assessment Report of the Intergovern¬mental Panel on Climate Change (IPCC), Cambridge University Press, Cambridge.
Kopp, J.R., Morgenstern, R.D, Pizer, W. and M.A. Toman (1998), Cheap Emission Reductions: Use `em or Lose `em, Resources for the Future, Washington, DC.
Matsuo, N. (1997), Key Elements Related to the Emissions Trading for the Kyoto Protocol, Institute of Energy Economics, Tokyo.
Mitchell, R. (1994), Regime Design Matters: Intentional Oil Pollution and Treaty Compliance, International Organization, Vol. 48, No. 3, pp. 425-458.
Mullins, F. and R. Baron (1997), International GHG Emission Trading, ‘Policy and Measures for Common Action’ Working Paper No. 9, Annex I Expert Group on the UNFCCC, OECD, Paris.
Oates, W.E. (1995), Green Taxes: Can We Protect the Environment and Improve the Tax System at the Same Time?, Southern Economic Journal, Vol. 61, pp. 915-922.
OECD (1997), Report of the Workshop on International GHG Emission Trading, Held on 17-18 April in Szentendre, Hungary, Organisation for Economic Co-operation and Development (OECD), Paris.
OECD (1998), Ensuring Compliance with a Global Climate Change Agreement, ENV/EPOC(98)5, Organisation for Economic Co-operation and Development (OECD), Paris.
Parry, Ian W.H., Williams III, R.C. and L.H. Goulder (1997), When Can Carbon Abatement Policies Increase Welfare? The Fundamental Role of Distorted Factor Markets, RFF Discussion Paper 97-18, Resources for the Future, Washington, DC.
Richels, R., Edmonds, J., Gruenspecht, H. and T. Wigley (1996), The Berlin Mandate: The Design of Cost-Effective Mitigation Strategies, in N. Nakicenovic, W.D. Nordhaus, R. Richels and F.L. Toth (eds.), Climate Change: Integrating Science, Economics and Policy, IIASA CP-96-1, International Institute for Applied Systems Analysis, Austria, pp. 229-248.
Rolfe, C. (1998), Kyoto Protocol to the United Nations Framework Convention on Climate Change: A Guide to the Protocol and Analysis of its Effectiveness, West Coast Environmental Law Association, Vancouver.
Stavins, R.N. (1998), What Can We Learn from the Grand Policy Experiment? Lessons from SO2 Allowance Trading, Journal of Economic Perspective, Vol. 12, No. 3, pp. 69-88.
TERI (1998), Clean Development Mechanism: Issues and Modalities, Tata Energy Research Institute (TERI), New Delhi.
Toman, M. and J.-C. Hourcade (1998), International Workshop Addresses Emissions Trading among Annex B Countries, Resources for the Future, 19-20 June, Washington, DC.
United Kingdom of Great Britain and Northern Ireland (on behalf of the European Community and its Member States and Czech Republic, Slovakia, Croatia, Latvia, Switzerland, Slovenia, Poland and Bulgaria, 1998), Non-paper on Principles, Modalities, Rules and Guidelines for an International Emissions Trading Regime, FCCC/SB/1998/MISC.1/Add.3, 5 June, Bonn.
UNFCCC (1997a), Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC), FCCC/CP/1997/L.7/Add.1, Bonn.
UNFCCC (1997b), Summary of the Report of the In-Depth Review of the National Communication of Russian Federation, United Nations Framework Convention on Climate Change (UNFCCC), FCCC/IDR.1(SUM)/RUS, Bonn.
UNFCCC (1999), Part Two of the Report of the Conference of the Parties on its Fourth Session, Held at Buenos Aires from 2 to 14 November 1998: Action Taken by the Conference of the Parties on its Fourth Session, United Nations Framework Convention on Climate Change (UNFCCC), FCCC/CP/1998/16/Add.1, Bonn.
USDOS (1998), The Kyoto Protocol on Climate Change, United States Department of State (USDOS), 15 January, Washington, DC.
United States Office of the President (1998), Economic Report of the President, Transmitted to the Congress. Washington, DC.
Vaughan, S. (1997), Tradeable Emissions Permits and the WTO, Presented at the European Union Advanced Study Course on Goals and Instruments for the Achievement of Global Warming Mitigation in Europe, 20-26 July, Berlin.
Victor, D.G. (1991), Limits of Market-Based Strategies for Slowing Global Warming: The Case of Tradeable Permits, Policy Sciences, Vol. 24, pp. 199-222.
Zhang, Z.X. (1997), The Economics of Energy Policy in China: Implications for Global Climate Change, New Horizons in Environmental Economics Series, Edward Elgar, Cheltenham, England.
Zhang, Z.X. (1998), Greenhouse Gas Emissions Trading and the World Trading Systems, Journal of World Trade, Vol. 32, No. 5, pp. 219-239.
Zhang, Z.X. and A. Nentjes (1998), International Tradeable Carbon Permits as a Strong Form of Joint Implemen¬tation, in J. Skea and S. Sorrell (eds.), Pollution for Sale: Emissions Trading and Joint Implementa¬tion, Edward Elgar, Cheltenham, England, pp. 322-342.
Available Versions of this Item
- The design and implementation of an international greenhouse gas emissions trading scheme. (deposited 28. Jan 2009 03:26) [Currently Displayed]