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Welfare Reducing Emission Permit Trade

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  • Haaparanta, Pertti
  • Liski, Matti
  • Riipinen, Toni

Abstract

In this paper we analyse the problem why in many simulations of the impacts of the Kyoto agreement Russia (or Former Soviet Union) appears to loose if the agreement is implemented via international emission permit markets even though with national implementation it cannot use its emission quota fully. We focus on the role of general equilibrium changes in world market prices as an explanation and show that it can, indeed, explain much of the welfare deterioration at least for Russia (Former Soviet Union). We base our quantitative analysis on the GTAP-E-model.

Suggested Citation

  • Haaparanta, Pertti & Liski, Matti & Riipinen, Toni, 2002. "Welfare Reducing Emission Permit Trade," Conference papers 331007, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331007
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    References listed on IDEAS

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