IDEAS home Printed from https://ideas.repec.org/a/taf/tcpoxx/v5y2005i5p503-516.html
   My bibliography  Save this article

How to attribute market leakage to CDM projects

Author

Listed:
  • Frank V�hringer
  • Timo Kuosmanen
  • Rob Dellink

Abstract

Economic studies suggest that market leakage rates of greenhouse gas abatement can reach the two-digit percentage range. Although the Marrakesh Accords require Clean Development Mechanism (CDM) projects to account for leakage, most projects neglect market leakage. Insufficient leakage accounting is facilitated by a lack of applicable methods regarding the quantification and attribution of project-related leakage effects. This article proposes a method for attributing CDM-related market leakage effects to individual projects. To this purpose, alternative attribution methods are analysed. We find that project-specific approaches fail to take account of market leakage effects. Consequently, we propose to estimate aggregate market leakage effects and attribute them proportionally to individual projects. We suggest that predetermined commodity-specific leakage factors are applied by project developers to any emission reductions that are associated with a project's leakage-relevant demand or supply changes. This approach is conservative, equitable, incentive-compatible and applicable at manageable costs.

Suggested Citation

  • Frank V�hringer & Timo Kuosmanen & Rob Dellink, 2005. "How to attribute market leakage to CDM projects," Climate Policy, Taylor & Francis Journals, vol. 5(5), pages 503-516, September.
    • Handle: RePEc:taf:tcpoxx:v:5:y:2005:i:5:p:503-516
    DOI: 10.1080/14693062.2006.9685574
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/14693062.2006.9685574
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14693062.2006.9685574?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Brian C. Murray & Bruce A. McCarl & Heng-Chi Lee, 2004. "Estimating Leakage from Forest Carbon Sequestration Programs," Land Economics, University of Wisconsin Press, vol. 80(1), pages 109-124.
    2. Mr. Noureddine Krichene, 2005. "A Simultaneous Equations Model for World Crude Oil and Natural Gas Markets," IMF Working Papers 2005/032, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Baker, J.S. & Wade, C.M. & Sohngen, B.L. & Ohrel, S. & Fawcett, A.A., 2019. "Potential complementarity between forest carbon sequestration incentives and biomass energy expansion," Energy Policy, Elsevier, vol. 126(C), pages 391-401.
    2. Bandyopadhyay, Kaushik Ranjan, 2009. "Does OPEC act as a Residual Producer?," MPRA Paper 25841, University Library of Munich, Germany, revised 2010.
    3. Thibault Fally & James Sayre, 2018. "Commodity Trade Matters," 2018 Meeting Papers 172, Society for Economic Dynamics.
    4. Monge, Juan J. & Bryant, Henry L. & Gan, Jianbang & Richardson, James W., 2016. "Land use and general equilibrium implications of a forest-based carbon sequestration policy in the United States," Ecological Economics, Elsevier, vol. 127(C), pages 102-120.
    5. Rong Li & Brent Sohngen & Xiaohui Tian, 2022. "Efficiency of forest carbon policies at intensive and extensive margins," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(4), pages 1243-1267, August.
    6. Andrade de Sá, Saraly & Daubanes, Julien, 2016. "Limit pricing and the (in)effectiveness of the carbon tax," Journal of Public Economics, Elsevier, vol. 139(C), pages 28-39.
    7. Jianhong Mu & Anne Wein & Bruce McCarl, 2015. "Land use and management change under climate change adaptation and mitigation strategies: a U.S. case study," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 20(7), pages 1041-1054, October.
    8. Drabik, Dusan & de Gorter, Harry & Just, David R., 2010. "The Implications of Alternative Biofuel Policies on Carbon Leakage," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 102689, Agricultural and Applied Economics Association.
    9. Andrade de Sá, Saraly & Daubanes, Julien, 2016. "Limit pricing and the (in)effectiveness of the carbon tax," Journal of Public Economics, Elsevier, vol. 139(C), pages 28-39.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:tcpoxx:v:5:y:2005:i:5:p:503-516. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/tcpo20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.