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Päästökauppajärjestelmien linkittämisen ilmastopoliittiset vaikutukset
[Linking emissions trading systems and climate policy]

Author

Abstract

This study analyses how linking emissions trading systems affects the economical aspects of climate policy at both national and international levels. The analysis focuses on cost-efficiency, distribution between participants, competitiveness and emissions targets. In addition we examine how linking affects the structure of emissions trading systems and decision-making. To analyse specific effects, we formulate a partial-equilibrium model to depict linking. With given assumptions, cost-efficiency of climate policy can be improved by linking local emissions trading systems and by switching from conventional credit-based systems to systems with “no lose” -targets, however the benefits are unevenly distributed between participants, inter alia, due to effects on competitiveness. Linking necessitates an international agreement on emissions levels between parties as linking changes the incentives to set an emissions target.

Suggested Citation

  • Itkonen, Juha, 2009. "Päästökauppajärjestelmien linkittämisen ilmastopoliittiset vaikutukset [Linking emissions trading systems and climate policy]," MPRA Paper 30171, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:30171
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    References listed on IDEAS

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    1. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
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    5. Nicholas Stern, 2008. "The Economics of Climate Change," American Economic Review, American Economic Association, vol. 98(2), pages 1-37, May.
    6. Robert W. Hahn, 1984. "Market Power and Transferable Property Rights," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(4), pages 753-765.
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    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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