IDEAS home Printed from https://ideas.repec.org/a/taf/tcpoxx/v2y2002i1p51-70.html
   My bibliography  Save this article

Analysis of a commitment period reserve at national and global levels

Author

Listed:
  • Fanny Missfeldt
  • Erik Haites

Abstract

To reduce the risk of overselling in the context of international greenhouse gas trading under the Kyoto Protocol, Parties have agreed to a commitment period reserve requirement. The commitment period reserve requires each Annex B Party to hold in its national registry quota equal to the lower of (a) X % of five times the Party's most recently reviewed emissions inventory; and (b) Y % of the Party's initial assigned amount. The agreement reached at the resumed sixth session of the Conference of the Parties (COP) sets X = 100% and Y = 90%. This paper analyses different specifications (values of X and Y ) of the commitment period reserve in terms of potential non-compliance due to overselling and restricted sales of quota surplus to compliance needs of the seller. To eliminate potential non-compliance due to overselling, Y must be equal to 100% and X must be greater than 105%. Specifications that limit potential non-compliance due to overselling, may temporarily restrict sales of quota surplus to the compliance of some countries. The Annex II Parties are less likely to face restrictions on sales of surplus quota than other Annex B countries. The risk of temporarily restricted sales is reduced to less than 10% for almost all countries for a value of X close to 90%.

Suggested Citation

  • Fanny Missfeldt & Erik Haites, 2002. "Analysis of a commitment period reserve at national and global levels," Climate Policy, Taylor & Francis Journals, vol. 2(1), pages 51-70, March.
    • Handle: RePEc:taf:tcpoxx:v:2:y:2002:i:1:p:51-70
    DOI: 10.3763/cpol.2002.0205
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.3763/cpol.2002.0205
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.3763/cpol.2002.0205?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Haites, Erik & Missfeldt, Fanny, 2004. "Liquidity implications of a commitment period reserve at national and global levels," Energy Economics, Elsevier, vol. 26(5), pages 845-868, September.
    2. Godal, Odd & Klaassen, Ger, 2006. "Carbon trading across sources and periods constrained by the Marrakesh Accords," Journal of Environmental Economics and Management, Elsevier, vol. 51(3), pages 308-322, May.
    3. Huang, Wei Ming & Lee, Grace W.M. & Wu, Chih Cheng, 2008. "GHG emissions, GDP growth and the Kyoto Protocol: A revisit of Environmental Kuznets Curve hypothesis," Energy Policy, Elsevier, vol. 36(1), pages 239-247, January.
    4. Jon Hovi & Bjart Holtsmark, 2006. "Cap-and-trade or carbon taxes? The feasibility of enforcement and the effects of non-compliance," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 6(2), pages 137-155, June.
    5. Springer, Urs, 2003. "The market for tradable GHG permits under the Kyoto Protocol: a survey of model studies," Energy Economics, Elsevier, vol. 25(5), pages 527-551, September.
    6. Godal, Odd & Klaassen, Ger, 2003. "Compliance and Imperfect Intertemporal Carbon Trading," Working Papers in Economics 09/03, University of Bergen, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:tcpoxx:v:2:y:2002:i:1:p:51-70. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/tcpo20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.