Emission trading and the stability of environmental agreements
نویسنده
چکیده
This paper is a first step in analysing how a market for tradeable permits created by an environmental agreement affects the stability of the agreement. I present a model in which the stability implications of (a) the market structure of the permit market and (b) the principle of initial allocation of permits can be analysed. I show that with identical players and an allocation giving every player an equal amount of permits, the market structure has no effect on the stability of the agreement, while for a given market structure this allocation makes the agreement more stable than any other allocation.
منابع مشابه
Economic and environmental performance analysis of Polish energy companies
The tightening of the European Union climate and energy policy, directed to raising the resilience and effectiveness of the European Union Emissions Trading System, may influence on companies' economic performance. Polish energy companies, which mainly use coal in the energy production process, are particularly worried about the potential negative consequences associated with the implementation...
متن کاملLessons Learned from Three Decades of Experience with Cap-and-Trade The Harvard Project on Climate Agreements
This essay provides an overview of the major emissions trading programs of the past thirty years on which significant documentation exists, and draws a number of important lessons for future applications of this environmental policy instrument. References to a larger number of other emissions trading programs that have been implemented or proposed are included.
متن کاملGlobal Supply Chain Management under Carbon Emission Trading Program Using Mixed Integer Programming and Genetic Algorithm
In this paper, the transportation problem under the carbon emission trading program ismodelled by mathematical programming and genetic algorithm. Since green supply chain issuesbecome important and new legislations are taken into account, carbon emissions costs are included inthe total costs of the supply chain. The optimisation model has the ability to minimise the total costsand provides the ...
متن کاملThe Case for International Emission Trade in the Absence of Cooperative Climate Policy
We evaluate the e cacy of international trade in carbon emission permits when countries are guided strictly by their national self-interest. To do so, we construct a calibrated general equilibrium model that jointly describes the world economy and the strategic incentives that guide the design of national abatement policies. Countries' decisions about their participation in a trading system and...
متن کاملRules for the Global Environment
The paper looks at the global environment as a public good and as a sink for CO2emissions. It discusses problems to be solved in institutional arrangements to protect global environmental media and looks at criteria for allocating the costs of emission reduction and emission rights. It analyzes institutional mechanisms that stabilize CO2-agreements and reviews the Kyoto Protocol, the perspectiv...
متن کامل