Risks, lessons learned, and secondary markets for greenhouse gas reductions
AbstractCollectively or individually, countries are likely to implement policies designed to limit greenhouse gas emissions. Experience from tradable quota schemes suggests that emissions trading could significantly reduce the costs of emission limits. The Kyoto Protocol provides the framework for a common trading mechanism for all countries - including countries that would not face immediate emission limits. Significantly, the Protocol places the responsibility for meeting emission limits with national governments. How policymakers choose to implement emission limits will significantly shape the incentives that drive evolving secondary markets for greenhouse-gas-based instruments. Potential market participants who were surveyed rate policy-related risk as higher than business-related risks. Domestic polices designed to reduce fragmentation in secondary markets, establish clear baselines and procedures, and strengthen host-country institutions can all help reduce the risks and costs of emission limits.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 2090.
Date of creation: 31 Mar 1999
Date of revision:
Economic Theory&Research; Labor Policies; Payment Systems&Infrastructure; Environmental Economics&Policies; Health Economics&Finance; Health Economics&Finance; Environmental Economics&Policies; Carbon Policy and Trading; Energy and Environment; Economic Theory&Research;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cason, T.N. & Gangadharan, L., 1997.
"An Experimental Study of Electronic Bulletin Board Trading for Emission Permits,"
Department of Economics - Working Papers Series
592, The University of Melbourne.
- Cason, Timothy N & Gangadharan, Lata, 1998. "An Experimental Study of Electronic Bulletin Board Trading for Emission Permits," Journal of Regulatory Economics, Springer, vol. 14(1), pages 55-73, July.
- Jane V. Hall & Amy L. Walton, 1996. "A Case Study In Pollution Markets: Dismal Science Vs. Dismal Reality," Contemporary Economic Policy, Western Economic Association International, vol. 14(2), pages 67-78, 04.
- Larson, Donald Frederick & DEC, 1994. "Copper and the negative price of storage," Policy Research Working Paper Series 1282, The World Bank.
- Gangadharan, L., 1997. "Transactions Costs in Tradeable Emissions Markets: an Empirical Study of the Regional Clean Air Incentives MArket in Los Angeles," Department of Economics - Working Papers Series 591, The University of Melbourne.
- Thomas H. Klier & Richard H. Mattoon & Michael A. Prager, 1997. "What can the Midwest learn from California about emissions trading?," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Aug.
- Cason, Timothy N. & Plott, Charles R., 1996. "EPA's New Emissions Trading Mechanism: A Laboratory Evaluation," Journal of Environmental Economics and Management, Elsevier, vol. 30(2), pages 133-160, March.
- Michael Ari Prager & Thomas H. Klier & Richard H. Mattoon, 1996. "A mixed bag: assessment of market performance and firm trading behavior in the NOx RECLAIM program," Working Paper Series, Regional Economic Issues WP-96-12, Federal Reserve Bank of Chicago.
- repec:ags:mareec:48862 is not listed on IDEAS
- Varangis, Panos & Larson, Don, 1996. "Dealing with commodity price uncertainty," Policy Research Working Paper Series 1667, The World Bank.
- repec:ags:mareec:48882 is not listed on IDEAS
- Hersh, Robert, 1996. "A Review of Integrated Pollution Control Efforts in Selected Countries," Discussion Papers dp-97-15, Resources For the Future.
- Scott Lee Johnson & David M. Pekelney, 1996. "Economic Assessment of the Regional Clean Air Incentives Market: A New Emissions Trading Program for Los Angeles," Land Economics, University of Wisconsin Press, vol. 72(3), pages 277-297.
- Larson, Donald F., 2013. "Blue water and the consequences of alternative food security policies in the Middle East and North Africa for water security," Policy Research Working Paper Series 6464, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.