Emissions Trading Regimes and Incentives to Participate in International Climate Agreements

20 Pages Posted: 7 Apr 2004

See all articles by Barbara K. Buchner

Barbara K. Buchner

International Energy Agency; Fondazione Eni Enrico Mattei (FEEM)

Carlo Carraro

Fondazione Eni Enrico Mattei (FEEM); Ca' Foscari University of Venice; CMCC - Euro Mediterranean Centre for Climate Change (Climate Policy Division); IPCC; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); Centre for European Policy Studies, Brussels; Green Growth Knowledge Platform; International Center for Climate Governance

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Date Written: March 2004

Abstract

This Paper analyses whether different emission trading regimes provide different incentives to participate in a cooperative climate agreement. Different incentive structures are discussed for those countries, namely the US, Russia and China, that are most important in the climate negotiation process. Our analysis confirms the conjecture that, by appropriately designing the emission-trading regime, it is possible to enhance the incentives to participate in a climate agreement. Therefore, participation and optimal policy should be jointly analysed. Moreover, our results show that the US, Russia and China have different most preferred climate coalitions and therefore adopt conflicting negotiation strategies.

Keywords: Agreements, climate, incentives, negotiations, policy

JEL Classification: C72, H23, Q25, Q28

Suggested Citation

Buchner, Barbara K. and Carraro, Carlo, Emissions Trading Regimes and Incentives to Participate in International Climate Agreements (March 2004). Available at SSRN: https://ssrn.com/abstract=516063

Barbara K. Buchner

International Energy Agency ( email )

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Carlo Carraro (Contact Author)

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