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Sectoral Targets for Developing Countries: Combining "Common but differentiated Responsibilities with meaningful Participation"

Author

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  • Meriem Hamdi-Cherif

    () (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Céline Guivarch

    () (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Philippe Quirion

    () (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

Although a global cap-and-trade system is seen by many researchers as the most cost-efficient solution to reduce greenhouse gas (GHG) emissions, the governments of developing countries refuse to enter into such a system in the short term. Many scholars and stakeholders, including the European Commission, have thus proposed various types of commitments for developing countries that appear less stringent, such as sectoral approaches. A macroeconomic assessment of such a sectoral approach is provided for developing countries. Two policy scenarios in particular are assessed, in which developed countries continue with Kyoto-type absolute commitments, while developing countries adopt an emissions trading system limited to electricity generation and linked to developed countries' cap-and-trade systems. In the first scenario, CO2 allowances are auctioned by the government, which distributes its revenues as a lump sum to households. In a second scenario, the auction revenues are used to reduce taxes on, or to give subsidies to, electricity generation. The quantitative analysis, conducted with a hybrid general equilibrium model, shows that such options provide almost as much emissions reduction as a global cap-and-trade system. Moreover, in the second sectoral scenario, GDP losses in developing countries are much lower than with a global cap-and-trade system, as is also the effect on the electricity price.

Suggested Citation

  • Meriem Hamdi-Cherif & Céline Guivarch & Philippe Quirion, 2011. "Sectoral Targets for Developing Countries: Combining "Common but differentiated Responsibilities with meaningful Participation"," Post-Print halshs-00692486, HAL.
  • Handle: RePEc:hal:journl:halshs-00692486
    DOI: 10.3763/cpol.2009.0070
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00692486
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    References listed on IDEAS

    as
    1. Philibert, Cedric, 2000. "How could emissions trading benefit developing countries," Energy Policy, Elsevier, vol. 28(13), pages 947-956, November.
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    Citations

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    Cited by:

    1. Li, Jun & Wang, Xin, 2012. "Energy and climate policy in China's twelfth five-year plan: A paradigm shift," Energy Policy, Elsevier, vol. 41(C), pages 519-528.
    2. repec:eee:tefoso:v:125:y:2017:i:c:p:258-274 is not listed on IDEAS
    3. Gregory Cook & Jean-Pierre Ponssard, 2011. "A proposal for the renewal of sectoral approaches building on the Cement Sustainability Initiative," Climate Policy, Taylor & Francis Journals, vol. 11(5), pages 1246-1256, September.
    4. Gavard, Claire & Kirat, Djamel, 2017. "Flexibility in the market for international carbon credits and price dynamics difference with European allowances," ZEW Discussion Papers 17-054, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Gavard, Claire & Winchester, Niven & Paltsev, Sergey, 2016. "Limited trading of emissions permits as a climate cooperation mechanism? US–China and EU–China examples," Energy Economics, Elsevier, vol. 58(C), pages 95-104.
    6. DURAND-LASSERVE, Olivier & Pierru , Axel & SMEERS, Yves, 2012. "Sensitivity of policy simulation to benchmark scenarios in CGE models: illustration with carbon leakage," CORE Discussion Papers 2012063, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Meriem Hamdi-Cherif & Henri Waisman, 2016. "Global carbon pricing and the “Common But Differentiated Responsibilities”: the case of China," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 16(5), pages 671-689, October.
    8. Claire Gavard & Djamel Kirat, 2015. "Flexibility in the Market for International Carbon Credits and Price. Dynamics Difference with European Allowances," Working Papers 2015.03, Fondazione Eni Enrico Mattei.
    9. Guy Meunier & Jean-Pierre Ponssard, 2012. "A Sectoral Approach Balancing Global Efficiency and Equity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(4), pages 533-552, December.
    10. Tietenberg, Tom, 2010. "Cap-and-Trade: The Evolution of an Economic Idea," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 39(3), October.

    More about this item

    Keywords

    cap-and-trade; carbon emissions trading; climate policy frameworks; climate regime; developing countries; sectoral approach; sectoral target; approches sectorielles; cible sectorielle; quotas d'émissions échangeables; pays en développement; régime climatique; structures de politique climatique;

    JEL classification:

    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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