Kyoto Protocol and Emission Trading: Does the Us Make a Difference?
30 Pages Posted: 12 Dec 2001
Date Written: December 2001
This paper presents an estimate of the costs of reducing CO2 emissions as agreed in Kyoto by Annex 1 countries. Unlike most of the existing literature, this paper uses an Almost Ideal Demand System model for energy products to estimate the role of each country within the Annex 1 market. A major result is the provision of marginal (and total) abatement costs for each. The recent position of the US is also discussed, showing the cost of some alternative outcomes.
Keywords: Environmental policy, Kyoto protocol, international agreements, CO2 emission, emission trading, marginal abatement cost
JEL Classification: C13, C21, C53, Q38, Q41, Q48
Suggested Citation: Suggested Citation