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Economics Of The “Critical Use” Of Methyl Bromide Under The Montreal Protocol

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  • STEPHEN J. DECANIO
  • CATHERINE S. NORMAN

Abstract

We analyze the economics of granting temporary exceptions to the phaseout of methyl bromide (MeBr) under the Montreal Protocol on Substances that Deplete the Ozone Layer. The protocol allows such exceptions based on technical or economic “feasibility” through a critical use exemption (CUE) process. Data compiled under the protocol make it possible to set forth criteria for the exceptions based on estimation of the benefits of compliance in terms of “willingness to pay” to abate the externality, as well as costs to the users creating the externality. We estimate a political willingness to pay and show that market and supply effects would reduce losses to MeBr users below estimates of such losses provided in CUE nominations. This suggests that the phaseout of MeBr can proceed with considerably fewer CUEs than requested by the parties. (JEL Q1, Q2, Q3, H8)

Suggested Citation

  • Stephen J. Decanio & Catherine S. Norman, 2005. "Economics Of The “Critical Use” Of Methyl Bromide Under The Montreal Protocol," Contemporary Economic Policy, Western Economic Association International, vol. 23(3), pages 376-393, July.
    • Handle: RePEc:bla:coecpo:v:23:y:2005:i:3:p:376-393
    DOI: 10.1093/cep/byi028
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    Cited by:

    1. Norman, Catherine S. & DECANIO, STEPHEN J & Fan, Lin, 2007. "Opportunities and Challenges for the 20th Anniversary of the Montréal Protocol," University of California at Santa Barbara, Economics Working Paper Series qt3t90g0gr, Department of Economics, UC Santa Barbara.
    2. Brian Gareau, 2010. "A critical review of the successful CFC phase-out versus the delayed methyl bromide phase-out in the Montreal Protocol," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 10(3), pages 209-231, September.

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    More about this item

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • H8 - Public Economics - - Miscellaneous Issues

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