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Emissions Trading, Capital Flows and the Kyoto Protocol

  • Warwick J. McKibbin
  • Martin T. Ross
  • Robert Shackleton
  • Peter J. Wilcoxen

We use an econometrically estimated multi-region, multi-sector general equilibrium model of the world economy to examine the effects of the tradable emissions permit system proposed in the 1997 Kyoto Protocol, under various assumptions about the extent of international permit trading. We focus, in particular, on the effects of the system on international trade and capital flows. Our results suggest that consideration of these flows significantly affects estimates of the domestic effects of the emissions mitigation policy, compared with analyses that ignore international capital flows.

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Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): Volume 20 (1999)
Issue (Month): Special Issue ()
Pages: 287-333

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Handle: RePEc:aen:journl:1999si-a12
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