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The Copenhagen Accord/Cancún Agreements Emission Pledges For 2020: Exploring Economic And Environmental Impacts

Author

Listed:
  • ROB DELLINK

    (OECD Environment Directorate, 2 rue Andre Pascal, Paris, France)

  • GREGORY BRINER

    (OECD Environment Directorate, 2 rue Andre Pascal, Paris, France)

  • CHRISTA CLAPP

    (OECD Environment Directorate, 2 rue Andre Pascal, Paris, France)

Abstract

Many countries have pledged targets or actions to reduce greenhouse gas emissions; these have been listed in the Appendices to the Copenhagen Accord and, at the time of writing, are being transferred to the UNFCCC Cancún Agreements. This analysis examines the costs and effectiveness of these pledges, as well as the potential for fiscal revenue, using a computable general equilibrium model. The results show that while the pledges are an important and welcome start to a global solution, they are not ambitious enough for a pathway to limit average global temperature increase to below 2°C. This paper estimates the costs of action at around 0.3% of GDP for both Annex I and non-Annex I countries and 0.5–0.6% of global real income. Furthermore, the fiscal revenue potential can exceed 1% of GDP for the Annex I countries if market-based instruments are used. Sensitivity analysis shows that allowing more offsets can reduce the costs of actions substantially, as can direct linking of carbon markets across Annex I countries.

Suggested Citation

  • Rob Dellink & Gregory Briner & Christa Clapp, 2011. "The Copenhagen Accord/Cancún Agreements Emission Pledges For 2020: Exploring Economic And Environmental Impacts," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 53-78.
    • Handle: RePEc:wsi:ccexxx:v:02:y:2011:i:01:n:s2010007811000206
    DOI: 10.1142/S2010007811000206
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ciscar, Juan-Carlos & Saveyn, Bert & Soria, Antonio & Szabo, Laszlo & Van Regemorter, Denise & Van Ierland, Tom, 2013. "A comparability analysis of global burden sharing GHG reduction scenarios," Energy Policy, Elsevier, vol. 55(C), pages 73-81.
    2. Böhringer, Christoph & Fischer, Carolyn & Rosendahl, Knut Einar, 2014. "Cost-effective unilateral climate policy design: Size matters," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 318-339.
    3. Athreye, Suma & Kathuria, Vinish & Martelli, Alessandro & Piscitello, Lucia, 2023. "Intellectual property rights and the international transfer of climate change mitigating technologies," Research Policy, Elsevier, vol. 52(9).
    4. den Elzen, Michel G.J. & Hof, Andries F. & Roelfsema, Mark, 2013. "Analysing the greenhouse gas emission reductions of the mitigation action plans by non-Annex I countries by 2020," Energy Policy, Elsevier, vol. 56(C), pages 633-643.
    5. Fouré, Jean & Guimbard, Houssein & Monjon, Stéphanie, 2016. "Border carbon adjustment and trade retaliation: What would be the cost for the European Union?," Energy Economics, Elsevier, vol. 54(C), pages 349-362.
    6. Vicki Duscha & Katja Schumacher & Joachim Schleich & Pierre Buisson, 2014. "Costs of meeting international climate targets without nuclear power," Climate Policy, Taylor & Francis Journals, vol. 14(3), pages 327-352, May.
    7. Jean Fouré & Houssein Guimbard & Stéphanie Monjon, 2013. "Border Carbon Ajustment in Europe and Trade Retaliation: What would be the Cost for European Union?," Working Papers 2013-34, CEPII research center.
    8. A. F. Hof & M. G. J. Elzen & A. Mendoza Beltran, 2016. "The EU 40 % greenhouse gas emission reduction target by 2030 in perspective," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 16(3), pages 375-392, June.

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    More about this item

    Keywords

    Climate change; computable general equilibrium model; Copenhagen Accord; Cancún Agreements; greenhouse gas mitigation; JEL Classifications: F53; JEL Classifications: H23; JEL Classifications: H87; JEL Classifications: Q54; JEL Classifications: Q58;
    All these keywords.

    JEL classification:

    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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