International Tradable Carbon Permits as a Strong Form of Joint Implementation

18 Pages Posted: 10 Feb 2009

See all articles by ZhongXiang Zhang

ZhongXiang Zhang

Tianjin University - Ma Yinchu School of Economics

Andries Nentjes

University of Groningen - Faculty of Law

Date Written: September 1997

Abstract

The concept of international tradable carbon permits has been discussed in scientific circles for over ten years. Since mid 1996, however, it has become a subject of more than just academic interest. The main reason for this change is to be found in the U.S. Draft Protocol to the Framework Convention on Climate Change (FCCC), submitted by the U.S. government on January 17, 1997. The U.S. contribution to preparations for the third Conference of the Parties to the FCCC, held in Kyoto in December 1997, represents the first concrete official proposal for an international emissions trading scheme. The European Union proposal for internal community burden sharing is also in line with the broad definition of emissions trading, although the individual country quotas are currently not transferable. These proposals clearly indicate that international trade in carbon dioxide emissions has turned into a politically relevant subject. In this article, we use the term 'strong form' deliberately to distinguish a tradable carbon permit (TCP) scheme from a weak form of project level joint implementation. We focus on discussing the following three aspects: (1) basic requirements for a TCP scheme; (2) a blueprint for designing national TCP schemes; and (3) constituting elements of an international TCP scheme. By discussing these aspects, the chapter indicates what a TCP scheme could look like and how it relates to joint implementation.

Keywords: International tradable carbon permits, Issue of permits, Distribution of permits, The permit market, Monitoring and enforcement

JEL Classification: Q48, Q52, Q54, Q58

Suggested Citation

Zhang, ZhongXiang and Nentjes, Andries, International Tradable Carbon Permits as a Strong Form of Joint Implementation (September 1997). Available at SSRN: https://ssrn.com/abstract=1340087 or http://dx.doi.org/10.2139/ssrn.1340087

ZhongXiang Zhang (Contact Author)

Tianjin University - Ma Yinchu School of Economics ( email )

92 Weijin Road, Nankai District
Tianjin 300072
China
+86 22 87370560 (Phone)

HOME PAGE: http://ideas.repec.org/f/pzh243.html

Andries Nentjes

University of Groningen - Faculty of Law ( email )

9700 AS Groningen
Netherlands

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