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Emissions trading, CDM, JI, and more: The climate strategy of the EU

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  • Klepper, Gernot
  • Peterson, Sonja

Abstract

The objective of this paper is to assess the likely allocation effects of the current cli-mate protection strategy as it is laid out in the National Allocation Plans (NAPs) for the European Emissions Trading Scheme (ETS). The multi-regional, multi-sectoral CGE-model DART is used to simulate the effects of the current policies in the year 2012 when the Kyoto targets need to be met. Different scenarios are simulated in or-der to highlight the effects of the grandfathering of permits to energy-intensive instal-lations, the use of the project-based mechanisms (CDM and JI), and the restriction imposed by the supplementarity criterion.

Suggested Citation

  • Klepper, Gernot & Peterson, Sonja, 2005. "Emissions trading, CDM, JI, and more: The climate strategy of the EU," Kiel Working Papers 1238, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1238
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    References listed on IDEAS

    as
    1. Franck Lecocq & Karan Capoor, "undated". "State and Trends of the Carbon Market 2005," World Bank Publications - Reports 13411, The World Bank Group.
    2. Klepper, Gernot & Peterson, Sonja & Springer, Katrin, 2003. "DART97: a description of the multi-regional, multi-sectoral trade model for the analysis of climate policies," Kiel Working Papers 1149, Kiel Institute for the World Economy (IfW Kiel).
    3. Franck Lecocq, 2005. "State and Trends of the Carbon Market—2004," World Bank Publications - Books, The World Bank Group, number 7457.
    4. Gernot Klepper & Sonja Peterson, 2005. "Trading Hot-Air. The Influence of Permit Allocation Rules, Market Power and the US Withdrawal from the Kyoto Protocol," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(2), pages 205-228, October.
    5. Klepper, Gernot & Peterson, Sonja, 2004. "The EU emissions trading scheme allowance prices, trade flows and competitiveness effects," Open Access Publications from Kiel Institute for the World Economy 3270, Kiel Institute for the World Economy (IfW Kiel).
    6. Gernot Klepper & Sonja Peterson, 2004. "The EU Emissions Trading Scheme. Allowance Prices, Trade Flows, Competitiveness Effects," Working Papers 2004.49, Fondazione Eni Enrico Mattei.
    7. repec:wbk:wboper:13410 is not listed on IDEAS
    8. Axel Michaelowa & Marcus Stronzik & Frauke Eckermann & Alistair Hunt, 2003. "Transaction costs of the Kyoto Mechanisms," Climate Policy, Taylor & Francis Journals, vol. 3(3), pages 261-278, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    EU; EU emissions trading scheme; National Allocation Plans; CDM and JI; Computable general equilibrium model; DART; Kyoto targets;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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