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Supply and demand structure for international offset permits under the Copenhagen Pledges

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  • Peter Heindl
  • Sebastian Voigt

Abstract

International carbon offsets from developing countries and emerging economies, such as permits from the clean development mechanism, could potentially play an important role for cost containment in domestic greenhouse gas regulation by industrialised countries. Assuming that major emitters such as the EU, the USA, Canada, Japan, Australia and New Zealand implement the “Copenhagen Pledges” and seek cost containment, the potential demand for offset permits is estimated to be 627–667 MtCO 2 e per year. To describe the supply structure, marginal abatement cost curves for developing countries and emerging economies are derived. Developing countries and emerging economies could supply 627–667 MtCO 2 e p.a. at costs of approximately EUR 10 (in 2004 EUR), neglecting transaction costs and country-specific risks. The highest potentials for the generation of carbon offsets are present in China, India and the rest of Asia. Copyright Springer Science+Business Media B.V. 2012

Suggested Citation

  • Peter Heindl & Sebastian Voigt, 2012. "Supply and demand structure for international offset permits under the Copenhagen Pledges," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 12(4), pages 343-360, November.
  • Handle: RePEc:spr:ieaple:v:12:y:2012:i:4:p:343-360
    DOI: 10.1007/s10784-012-9171-4
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    Cited by:

    1. Hübler, Michael & Voigt, Sebastian & Löschel, Andreas, 2014. "Designing an emissions trading scheme for China—An up-to-date climate policy assessment," Energy Policy, Elsevier, vol. 75(C), pages 57-72.
    2. Jiang, Jingjing & Xie, Dejun & Ye, Bin & Shen, Bo & Chen, Zhanming, 2016. "Research on China’s cap-and-trade carbon emission trading scheme: Overview and outlook," Applied Energy, Elsevier, vol. 178(C), pages 902-917.
    3. Olga Kiuila & Krzysztof Wójtowicz & Tomasz Żylicz & Leszek Kasek, 2016. "Economic and environmental effects of unilateral climate actions," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 21(2), pages 263-278, February.
    4. Olga Kiuila & Krzysztof Wójtowicz & Tomasz Żylicz & Leszek Kasek, 2016. "Economic and environmental effects of unilateral climate actions," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 21(2), pages 263-278, February.
    5. Katarina Buhr & Susanna Roth & Peter Stigson, 2014. "Climate Change Politics through a Global Pledge-and-Review Regime: Positions among Negotiators and Stakeholders," Sustainability, MDPI, Open Access Journal, vol. 6(2), pages 1-18, February.

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    More about this item

    Keywords

    Emissions trading; Offsets; CDM; Marginal abatement costs; Climate policy; Q52; Q58;
    All these keywords.

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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