Kyoto Protocol and Emission Trading: Does the US Make a Difference?
Fondazione Eni Enrico Mattei (FEEM), Milan; Centro Euro-Mediterraneo per i Cambiamenti Climatici (CMCC); Bocconi University - IEFE Centre for Research on Energy and Environmental Economics and Policy
affiliation not provided to SSRN
FEEM Working Paper No. 90.2001
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.
Number of Pages in PDF File: 30
Keywords: Environmental policy, Kyoto protocol, international agreements, CO2 emission, emission trading, marginal abatement cost
JEL Classification: C13, C21, C53, Q38, Q41, Q48
Date posted: December 12, 2001