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The Compensation Mechanism in the RAINS Model: The Norwegian Targets for Acidification

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  • Førsund, Finn R

    ()
    (Dept. of Economics, University of Oslo)

  • Wolfgang, Ove

    ()
    (Ragnar Frisch Centre for Economic Research)

Abstract

The RAINS model is used to calculate cost minimising abatement policies subject to European-wide spatial restrictions on pollution. The principle for choosing environmental targets for the 1994 Oslo Protocol was closing a gap between benchmark- and critical loads for each grid with a uniform percentage. During the negotiations for the 1999 Gothenburg Protocol accumulated ecosystems exceedances was adapted as basis for gap closure, and overshooting of the constraints allowed as an option, provided compensation could be found within the same country. A theoretical discussion of this compensation mechanism is provided. A simulation study, using the full RAINS model, of the impact of different levels of targets for troublesome Norwegian grids is presented, and results in the form of changes in accumulated acidity excesses and costs for the participating countries are reported.

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File URL: http://www.sv.uio.no/econ/english/research/memorandum/pdf-files/2001/Memo-34-2001.pdf
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Bibliographic Info

Paper provided by Oslo University, Department of Economics in its series Memorandum with number 34/2001.

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Length: 37 pages
Date of creation: 25 Nov 2001
Date of revision:
Handle: RePEc:hhs:osloec:2001_034

Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Email:
Web page: http://www.oekonomi.uio.no/indexe.html
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Related research

Keywords: Acid rain; RAINS; critical loads; gap closure; accumulated exceedances; compensation mechanism;

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  1. F.R. Forsund, 2000. "An Economic Interpretation of the Compensation Mechanism in the RAINS Model," Working Papers ir00036, International Institute for Applied Systems Analysis.
  2. Gough, C. A. & Bailey, P. D. & Biewald, B. & Kuylenstierna, J. C. I. & Chadwick, M. J., 1994. "Environmentally targeted objectives for reducing acidification in Europe," Energy Policy, Elsevier, vol. 22(12), pages 1055-1066, December.
  3. Ellis, J. Hugh, 1988. "Multiobjective mathematical programming models for acid rain control," European Journal of Operational Research, Elsevier, vol. 35(3), pages 365-377, June.
  4. Finn Førsund & Eric NÆvdal, 1998. "Efficiency Gains Under Exchange-Rate Emission Trading," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 12(4), pages 403-423, December.
  5. Ger Klaassen & Finn Førsund & Markus Amann, 1994. "Emission trading in Europe with an exchange rate," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 4(4), pages 305-330, August.
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