Template-Type: ReDIF-Article 1.0
Author-Name:  Vivek Tulpule
Author-Name:  Stephen Brown
Author-Name:  Jaekyu Lim
Author-Name:  Cain Polidano
Author-Name:  Horn Pant 
Author-Name:  Brian S. Fisher
Title:  The Kyoto Protocol: An Economic Analysis Using GTEM
Classification-JEL: F0
Pages:  257-285
Volume:  Volume 20
Issue:  Special Issue
Year:  1999
Abstract:  In this paper ABARE's Global Trade and Environment Model (GTEM) is used to analyse the potential of international emissions trading as a mechanism for helping to achieve the abatement commitments agreed to in the Kyoto Protocol. The prospect of two emission trading blocs, one consisting of the European Union and eastern Europe and the other consisting of many of the remaining Annex I regions, is also considered. The analysis shows that the carbon penalty varies significantly across regions when no emissions trading is allowed. In aggregate, the cost of abatement to Annex I regions falls with emissions trading.Under the assumption of the two trading blocs, the carbon penalty in the European bloc is higher than with full Annex I trading. The paper also considers the impact on developing countries and the role of carbon leakage in determining the economic impacts on Annex I regions.
Handle: RePEc:aen:journl:1999si-a11
File-URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=1050
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