The Compensation Mechanism in the RAINS Model: The Norwegian Targets for Acidification
The RAINS model is used to calculate cost minimising abatement policies subject to European-wide spatial restrictions on pollution. The principle for choosing environmental targets for the 1994 Oslo Protocol was closing a gap between benchmark- and critical loads for each grid with a uniform percentage. During the negotiations for the 1999 Gothenburg Protocol accumulated ecosystems exceedances was adapted as basis for gap closure, and overshooting of the constraints allowed as an option, provided compensation could be found within the same country. A theoretical discussion of this compensation mechanism is provided. A simulation study, using the full RAINS model, of the impact of different levels of targets for troublesome Norwegian grids is presented, and results in the form of changes in accumulated acidity excesses and costs for the participating countries are reported.
|Date of creation:||25 Nov 2001|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway|
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- Gough, C. A. & Bailey, P. D. & Biewald, B. & Kuylenstierna, J. C. I. & Chadwick, M. J., 1994. "Environmentally targeted objectives for reducing acidification in Europe," Energy Policy, Elsevier, vol. 22(12), pages 1055-1066, December.
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- Ger Klaassen & Finn Førsund & Markus Amann, 1994. "Emission trading in Europe with an exchange rate," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 4(4), pages 305-330, August.
- F.R. Forsund, 2000. "An Economic Interpretation of the Compensation Mechanism in the RAINS Model," Working Papers ir00036, International Institute for Applied Systems Analysis.
- Finn Førsund & Eric NÆvdal, 1998. "Efficiency Gains Under Exchange-Rate Emission Trading," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 12(4), pages 403-423, December.
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