Linkage of Tradable Permit Systems in International Climate Policy Architecture

Linkage of Tradable Permit Systems in International Climate Policy Architecture

Cap-and-trade systems have emerged as the preferred national and regional instrument for reducing emissions of greenhouse gases throughout the industrialized world, and the Clean Development Mechanism — an international emission-reduction-credit system — has developed a substantial constituency, despite some concerns about its performance. Because linkage between tradable permit systems can red...

Group Linkage of Tradable Permit Systems in International Climate Policy Architecture

Linking Tradable Permit Systems: A Key Element of Emerging International Climate Policy Architecture

This Article analyzes the role that linkage between emission trading systems could play in a future international climate policy architecture. Cap-and-trade systems, regional, national, and international in scope, are emerging as a preferred instrument for addressing global climate change throughout the industrialized world, and the Clean Development Mechanism— an emission-reduction-credit syst...

Post-Durban Climate Policy Architecture Based on Linkage of Cap- and-Trade Systems

The outcome of the December 2011 United Nations climate negotiations in Durban, South Africa, provides an important new opportunity to move toward an international climate policy architecture that is capable of delivering broad international participation and significant global CO2 emissions reductions at reasonable cost. We evaluate one important component of potential climate policy architect...

Efficiency Costs of Social Objectives in Tradable Permit Programs

Objectives of tradable permit programs are often broader than internalizing an externality and improving economic efficiency. Many programs are designed to accommodate community, cultural, and other non-efficiency goals through restrictions on trading. However, restrictions can decrease economic efficiency gains. We use a policy experiment from the Alaska halibut and sablefish tradable permit p...