IAEE Members and subscribers to The Energy Journal: Please log in to access the full text article or receive discounted pricing for this article.

Emissions Trading, Capital Flows and the Kyoto Protocol

Abstract:
We use an econometrically estimated multi-region, multi-sector general equilibrium model of the world economy to examine the effects of the tradable emissions permit system proposed in the 1997 Kyoto Protocol, under various assumptions about the extent of international permit trading. We focus, in particular, on the effects of the system on international trade and capital flows. Our results suggest that consideration of these flows significantly affects estimates of the domestic effects of the emissions mitigation policy, compared with analyses that ignore international capital flows.

Purchase ( $25 )

Energy Specializations: Energy Modeling – Other; Energy and the Environment – Climate Change and Greenhouse Gases; Energy and the Environment – Environmental Market Design; Energy and the Environment – Policy and Regulation

JEL Codes: Q54: Climate; Natural Disasters and Their Management; Global Warming, Q41: Energy: Demand and Supply; Prices, Q35: Hydrocarbon Resources, Q48: Energy: Government Policy, F18: Trade and Environment

Keywords: Kyoto protocol, tradable emissions permits trade, environment, greenhouse gases, Capital Flows

DOI: 10.5547/ISSN0195-6574-EJ-Vol20-NoSI-12

Published in Volume 20, Special Issue - The Cost of the Kyoto Protocol: A Multi-Model Evaluation of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.

 

© 2023 International Association for Energy Economics | Privacy Policy | Return Policy