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The economics of Kyoto flexible mechanisms: a survey

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  • Haoran Pan

    ()
    (K.U.Leuven, C.E.S., Energy, Transport and Environment)

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    Abstract

    Scientific study has revealed that man-made greenhouse gas emissions are causing global warming. A milestone of international effort for combating global warming was the establishment of the Kyoto Protocol to the United Nations Framework Convention on Climate Change in 1997. The Protocol sets out a 5% emission reduction target from 1990 level for Annex I region in 2010. Economic research has foreseen that it will be very costly for some industrial countries to comply the target individually and therefore suggested international co-operation through flexible mechanisms - Emissions Trading, Joint Implementation and Clean Development Mechanism. Because main greenhouse gases have the uniform-mixing feature, the use of the flexible mechanisms could be both environmentally and economically effective. Recently emerged a number of theoretical and empirical studies to explore the economics of the mechanisms. This paper is intended to survey the existing research results with the mechanisms, including conceptual clarifications, cost and benefit analysis, potential problems, empirical findings, and perspectives for future research.

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    Bibliographic Info

    Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment in its series Energy, Transport and Environment Working Papers Series with number ete0111.

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    Length: 36 pages
    Date of creation: May 2001
    Date of revision:
    Handle: RePEc:ete:etewps:ete0111

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    Keywords: global warming; Kyoto Protocol; flexible mechanisms;

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    Cited by:
    1. Mikel González & Francisco Greño, 2004. "Impacto Económico del Protocolo de Kyoto: Una aplicación para el País Vasco," Economic Working Papers at Centro de Estudios Andaluces E2004/34, Centro de Estudios Andaluces.

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