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

  • 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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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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