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What is Driving the EU Burden-Sharing Agreement: Efficiency or Equity?

Author

Listed:
  • Marklund, Per-Olov

    (Department of Economics, Umeå University)

  • Samakovlis, Eva

    (National Institute of Economic Research, Box 3116, SE-103 62 Stockholm, Sweden)

Abstract

Under the Kyoto Protocol the European Union (EU) agreed to reduce the emissions of greenhouse gases by 8 percent in comparison with the level in 1990. The Burden-Sharing Agreement (BSA) further redistributes the overall 8 percent reduction target among the EU Member States. The purpose of this paper is to evaluate the BSA from both an economical and a political perspective, which means performing hypothesis tests of whether cost-efficiency and equity respectively, were considered in the BSA settlement. Variables used to perform the equity tests are chosen on the basis of the Triptych study. However, the cost-efficiency test is made possible by first calculating marginal abatement costs from the directional output distance function, which is estimated on country production data for 1990-2000. The function is estimated using both corrected ordinary least squares and linear programming techniques. The main conclusion drawn from this study is that both efficiency and equity were considered important to the BSA.

Suggested Citation

  • Marklund, Per-Olov & Samakovlis, Eva, 2003. "What is Driving the EU Burden-Sharing Agreement: Efficiency or Equity?," Umeå Economic Studies 620, Umeå University, Department of Economics.
    • Handle: RePEc:hhs:umnees:0620
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    Citations

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    Cited by:

    1. Huhtala, Anni & Marklund, Per-Olov, 2005. "Environmental Targets and Shadow Prices of Bad Outputs in Organic and Conventional Farming," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24575, European Association of Agricultural Economists.
    2. Thomas Aronsson Aronsson & Thomas Jonsson & Tomas Sjögren, 2006. "Environmental Policy and Optimal Taxation in a Decentralized Economic Federation," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 62(3), pages 437-454, September.
    3. Paule Stephenson & Jonathan Boston, 2010. "Climate change, equity and the relevance of European 'effort-sharing' for global mitigation efforts," Climate Policy, Taylor & Francis Journals, vol. 10(1), pages 3-16, January.
    4. Ankarhem, Mattias, 2005. "Bioenergy, Pollution, and Economic Growth," Umeå Economic Studies 661, Umeå University, Department of Economics.

    More about this item

    Keywords

    burden-sharing; cost-efficiency; parametric directional output distance function; equity; greenhouse gas emission control;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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