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Päästökauppajärjestelmien linkittämisen ilmastopoliittiset vaikutukset
[Linking emissions trading systems and climate policy]

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Author Info

  • Itkonen, Juha

Abstract

This study analyses how linking emissions trading systems affects the economical aspects of climate policy at both national and international levels. The analysis focuses on cost-efficiency, distribution between participants, competitiveness and emissions targets. In addition we examine how linking affects the structure of emissions trading systems and decision-making. To analyse specific effects, we formulate a partial-equilibrium model to depict linking. With given assumptions, cost-efficiency of climate policy can be improved by linking local emissions trading systems and by switching from conventional credit-based systems to systems with “no lose” -targets, however the benefits are unevenly distributed between participants, inter alia, due to effects on competitiveness. Linking necessitates an international agreement on emissions levels between parties as linking changes the incentives to set an emissions target.

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File URL: http://mpra.ub.uni-muenchen.de/30171/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 30171.

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Date of creation: Apr 2009
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Handle: RePEc:pra:mprapa:30171

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Related research

Keywords: Climate Change; Climate policy; Emissions trading; Carbon Market; Linking; EU ETS; Kyoto Protocol;

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  1. Robert Godby, 2002. "Market Power in Laboratory Emission Permit Markets," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(3), pages 279-318, November.
  2. Hahn, Robert W, 1984. "Market Power and Transferable Property Rights," The Quarterly Journal of Economics, MIT Press, vol. 99(4), pages 753-65, November.
  3. Rehdanz, Katrin & Tol, Richard S.J., 2005. "Unilateral regulation of bilateral trade in greenhouse gas emission permits," Ecological Economics, Elsevier, vol. 54(4), pages 397-416, September.
  4. Christoph Bohringer & Tim Hoffmann & Andreas Lange & Andreas Loschel & Ulf Moslener, 2005. "Assessing Emission Regulation in Europe: An Interactive Simulation Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 1-22.
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