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Markets with tradable CO2 emission quotas: principles and practice

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  • Chichilnisky, Graciela
  • Heal, Geoffrey

Abstract

This paper reviews a range of issues relating to tradable carbon dioxide quotas. It considers the economic principles on which they are based, compares them with alternative carbon abatement policies, and reviews many aspects of how tradable quotas would be implemented in practice.

Suggested Citation

  • Chichilnisky, Graciela & Heal, Geoffrey, 1995. "Markets with tradable CO2 emission quotas: principles and practice," MPRA Paper 8486, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:8486
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    File URL: https://mpra.ub.uni-muenchen.de/8486/1/MPRA_paper_8486.pdf
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    References listed on IDEAS

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    1. Chichilnisky, Graciela, 1994. "North-South Trade and the Global Environment," American Economic Review, American Economic Association, vol. 84(4), pages 851-874, September.
    2. Martin L. Weitzman, 1974. "Prices vs. Quantities," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(4), pages 477-491.
    3. Chichilnisky, Graciela & Heal, Geoffrey, 1994. "Who should abate carbon emissions? : An international viewpoint," Economics Letters, Elsevier, vol. 44(4), pages 443-449, April.
    4. Claude Henry, 1974. "Option Values in the Economics of Irreplaceable Assets," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(5), pages 89-104.
    5. Heal, Geoffrey, 1992. "International negotiations on emission control," Structural Change and Economic Dynamics, Elsevier, vol. 3(2), pages 223-240, December.
    6. Graciela Chichilnisky, 1997. "What Is Sustainable Development?," Land Economics, University of Wisconsin Press, vol. 73(4), pages 467-491.
    7. Heal, G.M., 1995. "Markets and Biodiversity," Papers 95-17, Columbia - Graduate School of Business.
    8. Graciela Chichilnisky & Geoffrey Heal, 1993. "Global Environmental Risks," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 65-86, Fall.
    9. Chichilnisky, Graciela & Heal, Geoffrey & Beltratti, Andrea, 1995. "The Green Golden Rule," Economics Letters, Elsevier, vol. 49(2), pages 175-179, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

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    2. Hui Wang & Ran Tao & Juer Tong, 2009. "Trading Land Development Rights under a Planned Land Use System: The “Zhejiang Model”," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(1), pages 66-82, January.
    3. Helm, Carsten, 2003. "International emissions trading with endogenous allowance choices," Journal of Public Economics, Elsevier, vol. 87(12), pages 2737-2747, December.
    4. Ángel M. Prieto & José L. Zofío, 2004. "Stock splits: Modelización de la gestión ambiental preventiva mediante estándares," Investigaciones Economicas, Fundación SEPI, vol. 28(1), pages 43-66, January.
    5. Zofio, Jose L. & Prieto, Angel M., 2001. "Environmental efficiency and regulatory standards: the case of CO2 emissions from OECD industries," Resource and Energy Economics, Elsevier, vol. 23(1), pages 63-83, January.
    6. Selvaretnam, Geethanjali & Thampanishvong, Kannika, 2010. "Using Effluent Charges in Promoting Investment in Water Pollution Control Technology: A Model of Coordination Failure among Firms," SIRE Discussion Papers 2010-104, Scottish Institute for Research in Economics (SIRE).
    7. Dominique Bureau, 2009. "Économie d’un accord global sur le climat : une introduction," Économie et Prévision, Programme National Persée, vol. 190(4), pages 1-19.

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    More about this item

    Keywords

    OECD; environmental economics; global environment; climate change; emissions; international organizations; carbon tax; carbon market; joint implementation; Pigou; Coase; property rights; north-south; market costs; international markets;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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