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Greenhouse gas emissions trading among Pacific Rim countries: An analysis of policies to bring developing countries to the bargaining table


  • Rose, Adam
  • Wei, Dan


This paper examines the aggregate net costs and individual country cost savings of greenhouse gas emissions trading among Pacific Rim countries. We propose emission permit allocation rules designed to entice developing countries to participate. Absence of developing country involvement has served as an excuse for the lack by participation by the United States in the first compliance period of the Kyoto Protocol and may serve as a disincentive to even more countries in subsequent periods. Our analysis specifies permit allocation rules that could result in no net costs, and even cost-savings, to developing countries for their involvement in the emissions trading market, while at the same time providing extensive benefits to industrialized countries through access to lower-cost mitigation alternatives.

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  • Rose, Adam & Wei, Dan, 2008. "Greenhouse gas emissions trading among Pacific Rim countries: An analysis of policies to bring developing countries to the bargaining table," Energy Policy, Elsevier, vol. 36(4), pages 1420-1429, April.
  • Handle: RePEc:eee:enepol:v:36:y:2008:i:4:p:1420-1429

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    References listed on IDEAS

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    2. Adam Rose & Zhong Zhang, 2004. "Interregional burden-sharing of greenhouse gas mitigation in the United States," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 9(4), pages 477-500, October.
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    6. Mosnaim, Ariel, 2001. "Estimating CO2 abatement and sequestration potentials for Chile," Energy Policy, Elsevier, vol. 29(8), pages 631-640, June.
    7. Stevens, Brandt & Rose, Adam, 2002. "A Dynamic Analysis of the Marketable Permits Approach to Global Warming Policy: A Comparison of Spatial and Temporal Flexibility," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 45-69, July.
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    Cited by:

    1. Huang, Wei Ming & Lee, Grace W.M., 2009. "GHG legislation: Lessons from Taiwan," Energy Policy, Elsevier, vol. 37(7), pages 2696-2707, July.
    2. Chou, Kuei Tien & Liou, Hwa Meei, 2012. "Analysis on energy intensive industries under Taiwan's climate change policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2631-2642.
    3. Liou, Hwa Meei, 2011. "A comparison of the legislative framework and policies in Taiwan's Four GHG reduction acts," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(4), pages 1723-1747, May.
    4. Huang, Yu-Fen & Lin, Yu-Chun & Yang, Jing-Tang, 2010. "An innovative indicator of carbon dioxide emissions for developing countries: A study of Taiwan," Energy Policy, Elsevier, vol. 38(7), pages 3257-3262, July.

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