Sectoral Targets for Developing Countries: Combining 'Common but Differentiated Responsibilities' with 'Meaningful Participation'

27 Pages Posted: 23 Apr 2010

See all articles by Philippe Quirion

Philippe Quirion

CIRED, International Research Center on Environment & Development, France; CNRS/EHESS

Meriem Hamdi-Cherif

CIRED, International Research Center on Environment & Development, France

Celine Guivarch

CIRED, International Research Center on Environment & Development, France; Ecole Nationale des Ponts et Chaussées (ENPC); Université Paris Est

Date Written: December 23, 2009

Abstract

Although a global cap-and-trade system is seen by many researchers as the most cost-efficient solution to reduce greenhouse gas emissions, developing countries governments refuse to enter into such a system in the short term. Hence, many scholars and stakeholders, including the European Commission, have proposed various types of commitments for developing countries that appear less stringent, such as sectoral approaches. In this paper, we assess such a sectoral approach for developing countries. More precisely, we simulate two policy scenarios in which developed countries continue with Kyoto-type absolute commitments, whereas developing countries adopt an emission trading system limited to electricity generation and linked to developed countries' cap-and-trade system. In a first scenario, CO2 allowances are auctioned by the government, which distributes the auctions receipts lump-sum to households. In a second scenario, the auction receipts are used to reduce taxes on, or to give subsidies to, electricity generation. Our quantitative analysis, led with a hybrid general equilibrium model, shows that such options provide almost as much emission reductions as a global cap-and-trade system. Moreover, in the second sectoral scenario, GDP losses in developing countries are much lower than with a global cap-and-trade system and so is the impact on the electricity price.

Keywords: Sectoral Approach, Sectoral Target

JEL Classification: Q38

Suggested Citation

Quirion, Philippe and Hamdi-Cherif, Meriem and Guivarch, Céline, Sectoral Targets for Developing Countries: Combining 'Common but Differentiated Responsibilities' with 'Meaningful Participation' (December 23, 2009). FEEM Working Paper No. 37. 2010, Available at SSRN: https://ssrn.com/abstract=1594861 or http://dx.doi.org/10.2139/ssrn.1594861

Philippe Quirion (Contact Author)

CIRED, International Research Center on Environment & Development, France ( email )

Campus du Jardin Tropical
45 bis avenue de la Belle Gabrielle
F94736 Nogent sur Marne Cedex
France
+33 1 43 94 73 95 (Phone)
+33 1 43 94 73 70 (Fax)

CNRS/EHESS

54, boulevard Raspail
Paris, 75006
France

Meriem Hamdi-Cherif

CIRED, International Research Center on Environment & Development, France ( email )

Campus du Jardin Tropical
45 bis avenue de la Belle Gabrielle
F94736 Nogent sur Marne Cedex
France

Céline Guivarch

CIRED, International Research Center on Environment & Development, France ( email )

Campus du Jardin Tropical
45 bis avenue de la Belle Gabrielle
F94736 Nogent sur Marne Cedex
France
+33 143947320 (Phone)

Ecole Nationale des Ponts et Chaussées (ENPC) ( email )

28, rue des Saints-Peres
75343 Paris Cedex 07
France

Université Paris Est ( email )

Batiment Bois de l'Etang
5 rue Galilee
Champs sur Marne, 77420
France

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
61
Abstract Views
771
rank
436,985
PlumX Metrics