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Trading schemes for greenhouse gas emissions from European agriculture: A comparative analysis based on different implementation options

Listed author(s):
  • Ignacio Pérez Domínguez

    ()

    (Agricultural Economics Research Institute (LEI), Alexanderveld 5, 2585DB, The Hague, Netherlands)

  • Wolfgang Britz

    (Institute for Food and Resource Economics, University of Bonn, Bonn, Germany)

  • Karin Holm-Müller

    (Institute for Food and Resource Economics, University of Bonn, Bonn, Germany)

A rational negotiation strategy for coming multilateral negotiations regarding climate change requires knowledge about possible social, economic and environmental effects of policy instruments for the abatement of greenhouse gas emissions. With this purpose, an agricultural sector model is expanded to cover greenhouse gas emissions from agricultural sources in Europe and policy instruments for their reduction. This modelling approach concentrates on the application of a permit trade scheme for emission abatement within the Kyoto Protocol ‘first commitment’ baseline. The effects derived of three alternative schemes are described in detail: the EU ‘burden sharing’ agreement option defined as regional emission standards, emission trading between regions inside each Member State, and finally, emission trading between all European regions. The analysis shows the importance of selecting an adequate combination of instruments of emission abatement for the design of efficient emission reduction policies.

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File URL: http://ageconsearch.umn.edu/bitstream/207765/2/RAEStud-90-3-287-308.pdf
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Article provided by INRA Department of Economics in its journal Review of Agricultural and Environmental Studies.

Volume (Year): 90 (2009)
Issue (Month): 3 ()
Pages: 287-308

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Handle: RePEc:rae:jourae:v:90:y:2009:i:3:p:287-308
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  1. Holtsmark, Bjart & Maestad, Ottar, 2002. "Emission trading under the Kyoto Protocol--effects on fossil fuel markets under alternative regimes," Energy Policy, Elsevier, vol. 30(3), pages 207-218, February.
  2. Frank Jotzo & Axel Michaelowa, 2002. "Estimating the CDM market under the Marrakech Accords," Climate Policy, Taylor & Francis Journals, vol. 2(2-3), pages 179-196, September.
  3. Dominguez, Ignacio Perez & Wieck, Christine, 2006. "Welfare distribution between EU Member States through different national decoupling options. Implications for Spain," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 6(11).
  4. Stronzik, Marcus & Hunt, Alistair & Eckermann, Frauke & Taylor, Tim, 2003. "The Role of Transaction Costs and Risk Premia in the Determination of Climate Change Policy Responses," ZEW Discussion Papers 03-59, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Springer, Urs, 2003. "The market for tradable GHG permits under the Kyoto Protocol: a survey of model studies," Energy Economics, Elsevier, vol. 25(5), pages 527-551, September.
  6. Stéphane Cara & Martin Houzé & Pierre-Alain Jayet, 2005. "Methane and Nitrous Oxide Emissions from Agriculture in the EU: A Spatial Assessment of Sources and Abatement Costs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(4), pages 551-583, December.
  7. Jorgenson, Dale & Goettle, Richard & Ho, Mun Sing & Wilcoxen, Peter, 2009. "Cap and trade climate policy and U.S. economic adjustments," Journal of Policy Modeling, Elsevier, vol. 31(3), pages 362-381, May.
  8. 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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