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Linking Policies When Tastes Differ: Global Climate Policy in a Heterogeneous World

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  • Gilbert E. Metcalf
  • David Weisbach

Abstract

In this article we discuss the mechanics of linking different types of climate change policies and identify areas where linkage will be difficult. Our goal is to identify opportunities for constructive linkage and policy choices that may limit or hinder linkage. We argue that the basic approach underlying emission reduction credit systems like the Kyoto Clean Development Mechanism (CDM) and Joint Implementation can be extended to create linkage opportunities in diverse emission control systems in ways that do not necessarily suffer from the shortfalls of the current CDM. Moreover, although emission reduction credit systems are designed to work with market-based systems like cap and trade, we describe ways in which they can also interact with tax systems as well as certain regulatory systems. Copyright 2012, Oxford University Press.

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Bibliographic Info

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

Volume (Year): 6 (2012)
Issue (Month): 1 ()
Pages: 110-129

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Handle: RePEc:oup:renvpo:v:6:y:2012:i:1:p:110-129

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Cited by:
  1. Olmstead, Sheila M. & Stavins, Robert N., 2010. "Three Key Elements of Post-2012 International Climate Policy Architecture," Working Paper Series, Harvard University, John F. Kennedy School of Government rwp10-030, Harvard University, John F. Kennedy School of Government.
  2. Burtraw, Dallas & Palmer, Karen & Munnings, Clayton & Weber, Paige & Woerman, Matt, 2013. "Linking by Degrees: Incremental Alignment of Cap-and-Trade Markets," Discussion Papers, Resources For the Future dp-13-04, Resources For the Future.
  3. Jessica F. Green & Thomas Sterner & Gernot Wagner, 2014. "The Politics of Market Linkage: Linking Domestic Climate Policies with International Political Economy," Working Papers, Fondazione Eni Enrico Mattei 2014.64, Fondazione Eni Enrico Mattei.
  4. repec:reg:wpaper:588 is not listed on IDEAS

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