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What is Driving the EU Burden-Sharing Agreement: Efficiency or Equity?

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Author Info

  • Marklund, Per-Olov

    ()
    (Department of Economics, Umeå University)

  • Samakovlis, Eva

    ()
    (National Institute of Economic Research, Box 3116, SE-103 62 Stockholm, Sweden)

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    Abstract

    Under the Kyoto Protocol the European Union (EU) agreed to reduce the emissions of greenhouse gases by 8 percent in comparison with the level in 1990. The Burden-Sharing Agreement (BSA) further redistributes the overall 8 percent reduction target among the EU Member States. The purpose of this paper is to evaluate the BSA from both an economical and a political perspective, which means performing hypothesis tests of whether cost-efficiency and equity respectively, were considered in the BSA settlement. Variables used to perform the equity tests are chosen on the basis of the Triptych study. However, the cost-efficiency test is made possible by first calculating marginal abatement costs from the directional output distance function, which is estimated on country production data for 1990-2000. The function is estimated using both corrected ordinary least squares and linear programming techniques. The main conclusion drawn from this study is that both efficiency and equity were considered important to the BSA.

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    Bibliographic Info

    Paper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 620.

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    Length: 34 pages
    Date of creation: 16 Dec 2003
    Date of revision:
    Publication status: Published in Journal of Environmental Management, 2007, pages 317-329.
    Handle: RePEc:hhs:umnees:0620

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    Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
    Phone: 090 - 786 61 42
    Fax: 090 - 77 23 02
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    Web page: http://www.econ.umu.se/
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    Related research

    Keywords: burden-sharing; cost-efficiency; parametric directional output distance function; equity; greenhouse gas emission control;

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    Cited by:
    1. Ankarhem, Mattias, 2005. "Bioenergy, Pollution, and Economic Growth," UmeÃ¥ Economic Studies, UmeÃ¥ University, Department of Economics 661, Umeå University, Department of Economics.
    2. Thomas Aronsson Aronsson & Thomas Jonsson & Tomas Sjögren, 2006. "Environmental Policy and Optimal Taxation in a Decentralized Economic Federation," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, Mohr Siebeck, Tübingen, vol. 62(3), pages 437-454, September.

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