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Greenhouse gas emissions trading among Pacific Rim countries: An analysis of policies to bring developing countries to the bargaining table

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  • Rose, Adam
  • Wei, Dan

Abstract

This paper examines the aggregate net costs and individual country cost savings of greenhouse gas emissions trading among Pacific Rim countries. We propose emission permit allocation rules designed to entice developing countries to participate. Absence of developing country involvement has served as an excuse for the lack by participation by the United States in the first compliance period of the Kyoto Protocol and may serve as a disincentive to even more countries in subsequent periods. Our analysis specifies permit allocation rules that could result in no net costs, and even cost-savings, to developing countries for their involvement in the emissions trading market, while at the same time providing extensive benefits to industrialized countries through access to lower-cost mitigation alternatives.

Suggested Citation

  • Rose, Adam & Wei, Dan, 2008. "Greenhouse gas emissions trading among Pacific Rim countries: An analysis of policies to bring developing countries to the bargaining table," Energy Policy, Elsevier, vol. 36(4), pages 1420-1429, April.
    • Handle: RePEc:eee:enepol:v:36:y:2008:i:4:p:1420-1429
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    Cited by:

    1. Chou, Kuei Tien & Liou, Hwa Meei, 2012. "Analysis on energy intensive industries under Taiwan's climate change policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2631-2642.
    2. Kverndokk, Snorre & Rose, Adam, 2008. "Equity and Justice in Global Warming Policy," International Review of Environmental and Resource Economics, now publishers, vol. 2(2), pages 135-176, October.
    3. Liou, Hwa Meei, 2011. "A comparison of the legislative framework and policies in Taiwan's Four GHG reduction acts," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(4), pages 1723-1747, May.
    4. Huang, Yu-Fen & Lin, Yu-Chun & Yang, Jing-Tang, 2010. "An innovative indicator of carbon dioxide emissions for developing countries: A study of Taiwan," Energy Policy, Elsevier, vol. 38(7), pages 3257-3262, July.
    5. Adam Rose & Dan Wei & Jeffrey Wennberg & Thomas Peterson, 2009. "Climate Change Policy Formation in Michigan," International Regional Science Review, , vol. 32(4), pages 445-465, October.
    6. Dan Wei, 2010. "Regional Classification to Enhance Efficiency and Equity in Energy Policy: The Case of Energy Conservation in China," Environment and Planning A, , vol. 42(1), pages 153-168, January.
    7. Huang, Wei Ming & Lee, Grace W.M., 2009. "GHG legislation: Lessons from Taiwan," Energy Policy, Elsevier, vol. 37(7), pages 2696-2707, July.
    8. Adam Rose & Dan Wei & Noah Miller & Toon Vandyck, 2017. "Equity, Emissions Allowance Trading and the Paris Agreement on Climate Change," Economics of Disasters and Climate Change, Springer, vol. 1(3), pages 203-232, October.

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