Zhang, ZhongXiang and Nentjes, Andries (1997): International tradable carbon permits as a strong form of joint implementation.
Download (84kB) | Preview
The concept of international tradable carbon permits has been discussed in scientific circles for over ten years. Since mid 1996, however, it has become a subject of more than just academic interest. The main reason for this change is to be found in the U.S. Draft Protocol to the Framework Convention on Climate Change (FCCC), submitted by the U.S. government on January 17, 1997. The U.S. contribution to preparations for the third Conference of the Parties to the FCCC, held in Kyoto in December 1997, represents the first concrete official proposal for an international emissions trading scheme. The European Union proposal for internal community burden sharing is also in line with the broad definition of emissions trading, although the individual country quotas are currently not transferable. These proposals clearly indicate that international trade in carbon dioxide emissions has turned into a politically relevant subject. In this article, we use the term ‘strong form’ deliberately to distinguish a tradable carbon permit (TCP) scheme from a weak form of project level joint implementation. We focus on discussing the following three aspects: (1) basic requirements for a TCP scheme; (2) a blueprint for designing national TCP schemes; and (3) constituting elements of an international TCP scheme. By discussing these aspects, the chapter indicates what a TCP scheme could look like and how it relates to joint implementation.
|Item Type:||MPRA Paper|
|Original Title:||International tradable carbon permits as a strong form of joint implementation|
|Keywords:||International tradable carbon permits; Issue of permits; Distribution of permits; The permit market; Monitoring and enforcement|
|Subjects:||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:||10. Feb 2009 09:18|
|Last Modified:||14. Feb 2013 17:24|
Bill, S. (1997), European Commission’s Experience in Designing Environmental Taxation for Energy Products, European Commission, Brussels.
Dudek, D.J. and J. Goffman (1997), Emissions Budgets: Building an Effective International Greenhouse Gas Control System, Environmental Defence Fund, New York.
Hausker, K. (1992) 'The Politics And Economics Of Auction Design In The Market For Sulphur Dioxide Pollution', Journal of Policy Analysis and Management, 11(4), 553-572
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, Cambridge University Press, Cambridge.
Kågeson, P. (1991), Economic Instruments for Reducing Western European Carbon Dioxide Emissions, Swedish Environmental Advisory Council, Ministry of the Environment, Stockholm.
Kete, N. (1992), ‘The US Acid Rain Control Allowance Trading System’, in OECD, Climate Change: Designing a Tradable Permit System, Paris, pp. 78-108.
Klaassen, G. and A. Nentjes (1997), ‘Sulphur Trading under the 1990 CAAA in the US: An Assessment of First Experiences’, Journal of Institutional and Theoretical Economics, 153 (2), 384-410.
Matsuo, N. (1997), ‘Key Elements Related to Emissions Trading for the Kyoto Protocol’, Institute of Energy Economics, Tokyo.
Mullins, F. and R. Baron (1997), International GHG Emissions trading, ‘Policy and Measures for Common Action’ Working Paper No. 9, Annex I Expert Group on the UN FCCC, OECD, Paris.
Nentjes, A. and B. Dijkstra (1994), The Political Economy of Instrument Choice in Environmental Policy, in M. Faure, J. Vervaele and A. Weale (eds.), Environmental Standards in the European Union in an Interdisciplinary Framework, Maklu, Antwerpen, pp. 197-215.
Nentjes, A, Koutstaal, P. and G. Klaassen (1995), Tradable Carbon Permits: Feasibility, Experiences, Bottlenecks, NOP Report No. 410100104, Netherlands National Research Pro¬gramme on Global Air Pollution and Climate Change (NOP), Bilthoven, the Netherlands.
Palmisano, J. (1997), Climate Change Economics, Joint Implementation Fortnightly, Update, No. 17.
Parry, Ian W.H., Williams III, R.C. and L.H. Goulder (1996), When Can Carbon Abatement Policies Increase Welfare? The Fundamental Role of Distorted Factor Markets, 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.
Tietenberg, T.H. (1995), ‘Transferable Discharge Permits and Global Warming’, in D.W. Bromley (ed.), Handbook of Environmental Economics, Blackwell, Oxford, pp. 317-352.
Tietenberg, T. and D.G. Victor (1994), ‘Possible Administrative Structure and Procedures for Implementing a Tradable Entitlement Approach to Controlling Global Warming’, in United Nations Conference on Trade and Development, Combating Global Warming: Possible Rules, Regulations and Administrative Arrangements for a Global Market in CO2 Emission Entitlements, Geneva, pp. 1-60.
UNCTAD (1995), Controlling Carbon Dioxide Emissions: The Tradable Permit System, UNCTAD/GID/11, United Nations Conference on Trade and Development, Geneva.
Zhang, Z.X. (1997), The Economics of Energy Policy in China: Implications for Global Climate Change, New Horizons in Environmental Economics Series, Edward Elgar Publishing Limited, Cheltenham, England.