Sectoral and Regional Expansion of Emissions Trading
We consider an international emissions trading scheme with partial sectoral and regional coverage. Sectoral and regional expansion of the trading scheme is beneficial in aggregate, but not necessarily for individual countries. We simulate international CO2 emission quota markets using marginal abatement cost functions and the Copenhagen 2020 climate policy targets for selected countries that strategically allocate emissions in a bid to manipulate the quota price. Quota exporters and importers generally have conflicting interests about admitting more countries to the trading coalition, and our results indicate that some countries may lose substantially when the coalition expands in terms of new countries. For a given coalition, expanding sectoral coverage makes most countries better off, but some countries (notably the USA and Russia) may lose out due to loss of strategic advantages. In general, exporters tend to have stronger strategic power than importers.
|Date of creation:||Jun 2011|
|Date of revision:||Jun 2011|
|Publication status:||Published in Oldenburg Working Papers V-337-11|
|Contact details of provider:|| Postal: 26111 Oldenburg|
Phone: +49 441 798-4107
Fax: +49 441 798-4116
Web page: http://www.vwl.uni-oldenburg.de/
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.:
- Azusa OKAGAWA & Kanemi BAN, 2008. "Estimation of substitution elasticities for CGE models," Discussion Papers in Economics and Business 08-16, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
- Maeda, Akira, 2003. "The Emergence of Market Power in Emission Rights Markets: The Role of Initial Permit Distribution," Journal of Regulatory Economics, Springer, vol. 24(3), pages 293-314, November.
- Eichner, Thomas & Pethig, Rüdiger, 2009. "Efficient CO2 emissions control with emissions taxes and international emissions trading," European Economic Review, Elsevier, vol. 53(6), pages 625-635, August.
- Holtsmark, Bjart & Sommervoll, Dag Einar, 2012. "International emissions trading: Good or bad?," Economics Letters, Elsevier, vol. 117(1), pages 362-364.
- Eyckmans Johan & van Steenberghe Vincent & Van Regemorter Denise, .
"Is Kyoto Fatally Flawed? An Analysis with MacGEM,"
- Johan Eyckmans & Denise Van Regemorter & Vincent van Steenberghe, 2001. "Is Kyoto fatally flawed? An analysis with MacGEM," Energy, Transport and Environment Working Papers Series ete0118, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
- Christoph Böhringer & Knut Einar Rosendahl, 2008.
"Strategic Partitioning of Emissions Allowances. Under the EU Emission Trading Scheme,"
538, Statistics Norway, Research Department.
- Böhringer, Christoph & Rosendahl, Knut Einar, 2009. "Strategic partitioning of emission allowances under the EU Emission Trading Scheme," Resource and Energy Economics, Elsevier, vol. 31(3), pages 182-197, August.
- Bouwe Dijkstra & Edward Manderson & Tae-Yeoun Lee, 2011. "Extending the Sectoral Coverage of an International Emission Trading Scheme," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(2), pages 243-266, October.
- Betz, Regina & Sanderson, Todd & Ancev, Tihomir, 2009.
"In or Out: Efficient inclusion of installations in an Emissions Trading Scheme?,"
94877, Australian National University, Environmental Economics Research Hub.
- Regina Betz & Todd Sanderson & Tihomir Ancev, 2009. "In or out? Efficient inclusion of installations in an emissions trading scheme," Environmental Economics Research Hub Research Reports 0928, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
- Christoph Böhringer & Henrike Koschel & Ulf Moslener, 2008. "Efficiency losses from overlapping regulation of EU carbon emissions," Journal of Regulatory Economics, Springer, vol. 33(3), pages 299-317, June.
- Jagdish Bhagwati & Arvind Panagariya & T. N. Srinivasan, 1998. "Lectures on International Trade, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522470, December.
- Ralf Schüle & Wolfgang Sterk, 2009. "Linking domestic emissions trading schemes and the evolution of the international climate regime bottom-up support of top-down processes? Introduction to the special issue of MITI," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 14(5), pages 375-378, June.
- Hege Westskog, 1996. "Market Power in a System of Tradeable CO2 Quotas," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 85-103.
- Helm, Carsten, 2003. "International emissions trading with endogenous allowance choices," Journal of Public Economics, Elsevier, vol. 87(12), pages 2737-2747, December.
- Mustafa Babiker, John Reilly and Laurent Viguier, 2004. "Is International Emissions Trading Always Beneficial?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 33-56.
- David Malueg & Andrew Yates, 2009. "Bilateral Oligopoly, Private Information, and Pollution Permit Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(4), pages 553-572, August.
- Christoph Böhringer & Thomas F. Rutherford, 2010. "The Costs of Compliance: A CGE Assessment of Canada's Policy Options under the Kyoto Protocol," The World Economy, Wiley Blackwell, vol. 33(2), pages 177-211, 02.
- David Malueg & Andrew Yates, 2009. "Strategic Behavior, Private Information, and Decentralization in the European Union Emissions Trading System," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(3), pages 413-432, July.
- Frank Convery, 2009. "Origins and Development of the EU ETS," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(3), pages 391-412, July.
- Robert W. Hahn, 1984. "Market Power and Transferable Property Rights," The Quarterly Journal of Economics, Oxford University Press, vol. 99(4), pages 753-765.
When requesting a correction, please mention this item's handle: RePEc:old:dpaper:337-11. 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: (Catharina Schramm)
If references are entirely missing, you can add them using this form.