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CO2 Emissions Limits: Economic Adjustments and the Distribution of Burdens

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  • Henry D. Jacoby
  • Richard S. Eckaus
  • A. Denny Ellerman
  • Ronald G. Prinn
  • David M. Reiner
  • Zili Yang

Abstract

Policies under consideration within the Climate Convention would impose CO2 controls on only a subset of nations. A model of economic growth and emissions, coupled to an analysis of the climate system, is used to explore the consequences of a sample proposal of this type. The results show how economic burdens are likely to be distributed among nations, how carbon "leakage" may counteract the reductions attained, and how policy costs may be influenced by emissions trading. We explore the sensitivity of results to uncertainty in key underlying assumptions, including the influence on economic impacts and on the policy contribution to long-term climate goals.

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Bibliographic Info

Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): Volume18 (1997)
Issue (Month): Number 3 ()
Pages: 31-58

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Handle: RePEc:aen:journl:1997v18-03-a02

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Cited by:
  1. Liu, Xuemei, 2008. "The monetary compensation mechanism: An alternative to the clean development mechanism," Ecological Economics, Elsevier, vol. 66(2-3), pages 289-297, June.
  2. Reilly, J. & Paltsev, S. & Felzer, B. & Wang, X. & Kicklighter, D. & Melillo, J. & Prinn, R. & Sarofim, M. & Sokolov, A. & Wang, C., 2007. "Global economic effects of changes in crops, pasture, and forests due to changing climate, carbon dioxide, and ozone," Energy Policy, Elsevier, vol. 35(11), pages 5370-5383, November.
  3. Webster, Mort & Paltsev, Sergey & Reilly, John, 2010. "The hedge value of international emissions trading under uncertainty," Energy Policy, Elsevier, vol. 38(4), pages 1787-1796, April.
  4. Fæhn, Taran & Bruvoll, Annegrete, 2009. "Richer and cleaner--At others' expense?," Resource and Energy Economics, Elsevier, vol. 31(2), pages 103-122, May.
  5. Finn Aune & Rolf Golombek & Sverre Kittelsen, 2004. "Does Increased Extraction of Natural Gas Reduce Carbon Emissions?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 29(4), pages 379-400, December.
  6. Qu, Jiansheng & Zeng, Jingjing & Li, Yan & Wang, Qin & Maraseni, Tek & Zhang, Lihua & Zhang, Zhiqiang & Clarke-Sather, Abigail, 2013. "Household carbon dioxide emissions from peasants and herdsmen in northwestern arid-alpine regions, China," Energy Policy, Elsevier, vol. 57(C), pages 133-140.
  7. repec:ltr:wpaper:2010.02 is not listed on IDEAS
  8. Bruvoll, Annegrete & Faehn, Taran, 2006. "Transboundary effects of environmental policy: Markets and emission leakages," Ecological Economics, Elsevier, vol. 59(4), pages 499-510, October.
  9. Iain Fraser & Robert Waschik, 2010. "The Double Dividend Hypothesis in a CGE Model: Specific Factors and Variable Labour Supply," Studies in Economics 1001, Department of Economics, University of Kent.
  10. Hoel,M., 2001. "Domestic inefficiencies caused by transboundary pollution problems when there is no international coordination of environmental policies," Memorandum 17/2001, Oslo University, Department of Economics.
  11. U. Ciorba & A. Lanza & F. Pauli, 2001. "Kyoto Commitment And Emissions Trading: A European Union Perspective," Working Paper CRENoS 200102, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  12. repec:reg:wpaper:60 is not listed on IDEAS
  13. Huifang Tian & John Whalley, 2009. "Level versus Equivalent Intensity Carbon Mitigation Commitments," University of Western Ontario, Economic Policy Research Institute Working Papers 20094, University of Western Ontario, Economic Policy Research Institute.
  14. Barbara Buchner & Marzio Galeotti, 2003. "Climate Policy and Economic Growth in Developing Countries," Working Papers 2003.91, Fondazione Eni Enrico Mattei.
  15. Webster, Mort & Paltsev, Sergey & Reilly, John, 2008. "Autonomous efficiency improvement or income elasticity of energy demand: Does it matter?," Energy Economics, Elsevier, vol. 30(6), pages 2785-2798, November.
  16. Babiker, Mustafa & Gurgel, Angelo & Paltsev, Sergey & Reilly, John, 2009. "Forward-looking versus recursive-dynamic modeling in climate policy analysis: A comparison," Economic Modelling, Elsevier, vol. 26(6), pages 1341-1354, November.
  17. Juan Pablo Montero & Luis Cifuentes & Felipe Soto, 2000. "Participación voluntaria en políticas internacionales de cambio climático: implicancias para Chile," Estudios de Economia, University of Chile, Department of Economics, vol. 27(1 Year 20), pages 69-93, June.
  18. Viguier, Laurent L. & Babiker, Mustafa H. & Reilly, John M., 2003. "The costs of the Kyoto Protocol in the European Union," Energy Policy, Elsevier, vol. 31(5), pages 459-481, April.
  19. Satoru Kasahara & Sergey Paltsev & John Reilly & Henry Jacoby & A. Ellerman, 2007. "Climate Change Taxes and Energy Efficiency in Japan," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(2), pages 377-410, June.
  20. repec:reg:wpaper:610 is not listed on IDEAS

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