Clean-development investments: an incentive-compatible CGE modeling framework
The Clean Development Mechanism (CDM) established under the Kyoto Protocol allows industrialized Annex I countries to offset part of their domestic emissions by investing in emissions-reduction projects in developing non-Annex I countries. We present a novel CDM modeling framework which can be used in computable-general-equilibrium (CGE) models to quantify the sector-specific and macroeconomic impacts of CDM investments. Compared to conventional approaches that mimic CDM as sectoral emission trading, our framework adopts a micro consistent representation of the CDM incentive structure and its investment characteristics. In our empirical application based on GTAP data we show that incentive compatibility implies that CDM-implementing sectors do not suffer and overall welfare gains tend to be lower than suggested by conventional modeling approaches.
|Date of creation:||2013|
|Contact details of provider:|| Web page: http://www.socialpolitik.org/|
More information through EDIRC
References listed on IDEAS
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.:
- Jean-Marc Burniaux & Jean Château & Rob Dellink & Romain Duval & Stéphanie Jamet, 2009. "The Economics of Climate Change Mitigation: How to Build the Necessary Global Action in a Cost-Effective Manner," OECD Economics Department Working Papers 701, OECD Publishing.
- Christopher N. MacCracken & James A. Edmonds & Son H. Kim & Ronald D. Sands, 1999. "The Economics of the Kyoto Protocol," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 25-71.
- Christoph Bohringer & Jared Carbone & Thomas F. Rutherford, 2013.
"Embodied Carbon Tariffs,"
2013-24, Department of Economics, University of Calgary, revised 11 Oct 2013.
- Christoph Böhringer & Jared C. Carbone & Thomas F. Rutherford, 2011. "Embodied Carbon Tariffs," Working Papers V-340-11, University of Oldenburg, Department of Economics, revised Sep 2011.
- Christoph Böhringer & Jared C. Carbone & Thomas F. Rutherford, 2011. "Embodied Carbon Tariffs," NBER Working Papers 17376, National Bureau of Economic Research, Inc.
- Christoph Böhringer & Jared C. Carbone & Thomas F. Rutherford, 2013. "Embodied Carbon Tariffs," ZenTra Working Papers in Transnational Studies 25 / 2014, ZenTra - Center for Transnational Studies, revised Jan 2014.
- repec:wbk:wboper:13410 is not listed on IDEAS
- Franck Lecocq & Karan Capoor, "undated". "State and Trends of the Carbon Market 2005," World Bank Other Operational Studies 13411, The World Bank.
- Gernot Klepper & Sonja Peterson, 2005.
"Emissions Trading, CDM, JI, and More – The Climate Strategy of the EU,"
2005.55, Fondazione Eni Enrico Mattei.
- Gernot Klepper & Sonja Peterson, 2006. "Emissions Trading, CDM, JI, and More: The Climate Strategy of the EU," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 1-26.
- 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).
- Klepper, Gernot & Peterson, Sonja, 2006. "Emissions trading, CDM, JI, and more: the climate strategy of the EU," Open Access Publications from Kiel Institute for the World Economy 3814, Kiel Institute for the World Economy (IfW).
- Gernot Klepper & Sonja Peterson, 2005. "Emissions Trading, CDM, JI, and More ; The Climate Strategy of the EU," Kiel Working Papers 1238, Kiel Institute for the World Economy.
- Christoph Böhringer & Thomas Rutherford, 2002. "Carbon Abatement and International Spillovers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(3), pages 391-417, July.
- Böhringer, Christoph & Rutherford, Thomas Fox & Wiegard, Wolfgang, 2003. "Computable general equilibrium analysis: Opening a black box," ZEW Discussion Papers 03-56, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Rutherford, Thomas F., 1995. "Extension of GAMS for complementarity problems arising in applied economic analysis," Journal of Economic Dynamics and Control, Elsevier, vol. 19(8), pages 1299-1324, November.
- Michaelowa, Axel & Jotzo, Frank, 2005. "Transaction costs, institutional rigidities and the size of the clean development mechanism," Energy Policy, Elsevier, vol. 33(4), pages 511-523, March.
- Steffen Kallbekken, 2007. "Why the CDM will reduce carbon leakage," Climate Policy, Taylor & Francis Journals, vol. 7(3), pages 197-211, May.
- Klepper, Gernot, 2011. "The future of the European Emission Trading System and the Clean Development Mechanism in a post-Kyoto world," Energy Economics, Elsevier, vol. 33(4), pages 687-698, July.
- Emma Paulsson, 2009. "A review of the CDM literature: from fine-tuning to critical scrutiny?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 9(1), pages 63-80, February.
- Springer, Urs, 2003. "The market for tradable GHG permits under the Kyoto Protocol: a survey of model studies," Energy Economics, Elsevier, vol. 25(5), pages 527-551, September.
- Franck Lecocq, 2005. "State and Trends of the Carbon Market—2004," World Bank Publications, The World Bank, number 7457, July.
When requesting a correction, please mention this item's handle: RePEc:zbw:vfsc13:79939. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.