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Emissions Trading, Capital Flows and the Kyoto Protocol

Author

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

Abstract

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.

Suggested Citation

  • Warwick J. McKibbin & Martin T. Ross & Robert Shackleton & Peter J. Wilcoxen, 1999. "Emissions Trading, Capital Flows and the Kyoto Protocol," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 287-333.
    • Handle: RePEc:aen:journl:1999si-a12
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    JEL classification:

    • F0 - International Economics - - General

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