Is CO2 Trading Always Beneficial? A CGE-Model Analysis on Secondary Environmental Benefits
The paper analyzes the cost-efficiency of trading CO2 emissions by focusing on the overall environmental impacts of active climate policy measures. When reducing CO2 emissions, other emissions, also related to the consumption of fossil fuels, decrease with no additional cost. These secondary benefits must be taken into consideration when analyzing gains from international emissions trading. The Swedish environmental target to comply with the Kyoto Protocol by reducing greenhouse gases, and two national goals to alleviate acidification and eutrofication effects by reducing SO2 and NOx pollutants are simultaneously studied in a CGE-modeling framework. The results indicate that when secondary benefits are taken into account, it may still be in the government’s interest to decrease CO2 nationally, instead of engaging in seemingly low-cost trading.
|Date of creation:||01 Jul 2000|
|Contact details of provider:|| Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden|
Phone: 46-(0)8-453 59 00
Fax: 46-(0)8-453 59 80
Web page: http://www.konj.se/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Parry, Ian W. H. & Williams, Roberton III & Goulder, Lawrence H., 1999.
"When Can Carbon Abatement Policies Increase Welfare? The Fundamental Role of Distorted Factor Markets,"
Journal of Environmental Economics and Management,
Elsevier, vol. 37(1), pages 52-84, January.
- Parry, Ian & Goulder, Lawrence & Williams III, Roberton, 1997. "When Can Carbon Abatement Policies Increase Welfare? The Fundamental Role of Distorted Factor Markets," Discussion Papers dp-97-18-rev, Resources For the Future.
- Ian W. H. Parry & Roberton C. Williams III & Lawrence H. Goulder, 1997. "When Can Carbon Abatement Policies Increase Welfare? The Fundamental Role of Distorted Factor Markets," NBER Working Papers 5967, National Bureau of Economic Research, Inc.
- Kverndokk,S. & Rosendahl,E., 2000. "CO2 mitigation costs and ancillary benefits in the Nordic countries, the UK and Ireland : a survey," Memorandum 34/2000, Oslo University, Department of Economics.
- Matsuo, Naoki, 1998. "Key elements related to the emissions trading for the Kyoto protocol," Energy Policy, Elsevier, vol. 26(3), pages 263-273, February.
When requesting a correction, please mention this item's handle: RePEc:hhs:nierwp:0075. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sarah Hegardt Grant)
If references are entirely missing, you can add them using this form.