An assessment of the EU proposal for ceilings on the use of Kyoto flexibility mechanisms
AbstractThe Kyoto Protocol is the first international environmental agreement that sets legally binding greenhouse gas emissions targets and timetables for Annex I countries. It incorporates emissions trading, joint implementation and the clean development mechanism. Because each of the Articles defining the three flexibility mechanisms carries wording that the use of the mechanism must be supplemental to domestic actions, the supplementarity provisions have been the focus of the international climate change negotiations subsequent to Kyoto. Whether the supplementarity clauses will be translated into a concrete ceiling, and if so, how should a concrete ceiling on the use of the three flexible mechanisms be defined remain to be determined. To date, the European Union (EU) has put forward a proposal for ceilings on the use of these flexibility mechanisms. Given the great policy relevance to the ongoing negotiations on the overall issues of flexibility mechanisms, this paper has provided a quantitative assessment of the implications of the EU ceilings with and without considering the however clause. Our results suggest that such ceilings are less restrictive to the EU than to the US and Japan in terms of levels of restriction on permits imports, and can prevent one third of the amount of hot air from entering the market. Our results also demonstrate that although the US and Japan are firmly opposed to such a restriction, they tend to benefit more from it than the EU which strongly advocates such ceilings, in terms of the reductions in the total abatement costs relative to the no trading case. Moreover, their gains can increase even further, provided that the however clause would operate as intended.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Ecological Economics.
Volume (Year): 37 (2001)
Issue (Month): 1 (April)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolecon
Other versions of this item:
- Zhang, ZhongXiang, 2000. "An assessment of the EU proposal for ceilings on the use of Kyoto flexibility mechanisms," MPRA Paper 13151, University Library of Munich, Germany.
- Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
- Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Zhang, Zhong Xiang, 1999.
"Estimating the size of the potential market for the Kyoto flexibility mechanisms,"
CCSO Working Papers
199920, University of Groningen, CCSO Centre for Economic Research.
- ZhongXiang Zhang, 2000. "Estimating the size of the potential market for the Kyoto flexibility mechanisms," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(3), pages 491-521, 09.
- Zhang, ZhongXiang, 1999. "Estimating the size of the potential market for all three flexibility mechanisms under the Kyoto Protocol," MPRA Paper 13088, University Library of Munich, Germany.
- A. Denny Ellerman & Ian Sue Wing, 2000. "Supplementarity: An Invitation to Monopsony?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 29-59.
- Dutschke, Michael & Michaelowa, Axel, 1998. "Creation and sharing of credits through the clean development mechanism under the Kyoto Protocol," HWWA Discussion Papers 62, Hamburg Institute of International Economics (HWWA).
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If references are entirely missing, you can add them using this form.