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Long-Run Implications for Developing Countries of Joint Implementation of Greenhouse Gas Mitigation

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Author Info

  • Adam Rose
  • Erwin Bulte
  • Henk Folmer

Abstract

Joint Implementation (JI) calls for cooperation between industrialized and developing countries in the mitigation of greenhouse gas (GHG) emissions. However, a major concern of potential host countries is that, if they utilize their low-cost options for JI now, they will be left with only high cost options in the future, thereby penalizing them at a time when they may be obligated to mitigate GHGs themselves. This paper formalizes this hypothesis by utilizing an optimal control framework analogous to the Hotelling model of non-renewable resource extraction. The results are that cumulative abatement effects can impose costs on the future, but that they can be offset by technological change, market power, or compensation. Copyright Kluwer Academic Publishers 1999

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File URL: http://hdl.handle.net/10.1023/A:1008396829502
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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 14 (1999)
Issue (Month): 1 (July)
Pages: 19-31

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Handle: RePEc:kap:enreec:v:14:y:1999:i:1:p:19-31

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Web page: http://www.springerlink.com/link.asp?id=100263

Related research

Keywords: greenhouse gas mitigation; activities implemented jointly; clean development mechanism; international cooperation; optimal control;

References

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  1. Farzin Y. H., 1995. "Technological Change and the Dynamics of Resource Scarcity Measures," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 105-120, July.
  2. Fukuda, Shin-ichi & Hoshi, Takeo & Ito, Takatoshi & Rose, Andrew, 2006. "International Finance," Journal of the Japanese and International Economies, Elsevier, vol. 20(4), pages 455-458, December.
  3. Richard L. Gordon, 1967. "A Reinterpretation of the Pure Theory of Exhaustion," Journal of Political Economy, University of Chicago Press, vol. 75, pages 274.
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Citations

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Cited by:
  1. Muller, Adrian, 2007. "How to make the clean development mechanism sustainable--The potential of rent extraction," Energy Policy, Elsevier, vol. 35(6), pages 3203-3212, June.
  2. Nussbaumer, Patrick, 2009. "On the contribution of labelled Certified Emission Reductions to sustainable development: A multi-criteria evaluation of CDM projects," Energy Policy, Elsevier, vol. 37(1), pages 91-101, January.
  3. BRECHET, Thierry & GERMAIN, Marc & VAN STEENBERGHE, Vincent, 2004. "The Clean Development Mechanism under the Kyoto Protocol and the `low-hanging fruits' issue," CORE Discussion Papers 2004081, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Adrien Vogt-Schilb & Stéphane Hallegatte, 2013. "Marginal Abatement Cost Curves and the Optimal Timing of Mitigation Measures," Working Papers 2013.89, Fondazione Eni Enrico Mattei.
  5. Kim Olsen & Jyoti Painuly, 2002. "The Clean Development Mechanism: A Bane or a Boon for Developing Countries?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 2(3), pages 237-260, September.
  6. repec:hal:ciredw:hal-00916328 is not listed on IDEAS
  7. Buonanno, Paolo & Carraro, Carlo & Castelnuovo, Efrem & Galeotti, Marzio, 2000. "Emission Trading Restrictions with Endogenous Technological Change," CEPR Discussion Papers 2514, C.E.P.R. Discussion Papers.
  8. David Popp, 2008. "International Technology Transfer for Climate Policy," Center for Policy Research Policy Briefs 39, Center for Policy Research, Maxwell School, Syracuse University.
  9. Toman, Michael & Kolstad, Charles, 2000. "The Economics of Climate Policy," Discussion Papers dp-00-40, Resources For the Future.
  10. Daubanes, Julien, 2009. "Changement climatique, instruments économiques et propositions pour un accord post-Kyoto: une synthèse," TSE Working Papers 09-006, Toulouse School of Economics (TSE).
  11. Stronzik, Marcus & Dette, Birgit & Herold, Anke, 2000. "Early crediting als klimapolitisches Instrument: Eine ökonomische und rechtliche Analyse," ZEW Dokumentationen 00-13, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  12. Liu, Xuemei, 2008. "Rent extraction with a type-by-type scheme: An instrument to incorporate sustainable development into the CDM," Energy Policy, Elsevier, vol. 36(6), pages 1873-1878, June.
  13. Urvashi Narain & Klaas Veld, 2008. "The Clean Development Mechanism’s Low-hanging Fruit Problem: When Might it Arise, and How Might it be Solved?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 40(3), pages 445-465, July.
  14. repec:hal:wpaper:hal-00916328 is not listed on IDEAS

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