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Long-Run Implications for Developing Countries of Joint Implementation of Greenhouse Gas Mitigation

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  • Adam Rose
  • Erwin Bulte
  • Henk Folmer

Abstract

Joint Implementation (JI) calls for cooperation between industrialized and developing countries in the mitigation of greenhouse gas (GHG) emissions. However, a major concern of potential host countries is that, if they utilize their low-cost options for JI now, they will be left with only high cost options in the future, thereby penalizing them at a time when they may be obligated to mitigate GHGs themselves. This paper formalizes this hypothesis by utilizing an optimal control framework analogous to the Hotelling model of non-renewable resource extraction. The results are that cumulative abatement effects can impose costs on the future, but that they can be offset by technological change, market power, or compensation. Copyright Kluwer Academic Publishers 1999

Suggested Citation

  • Adam Rose & Erwin Bulte & Henk Folmer, 1999. "Long-Run Implications for Developing Countries of Joint Implementation of Greenhouse Gas Mitigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 14(1), pages 19-31, July.
    • Handle: RePEc:kap:enreec:v:14:y:1999:i:1:p:19-31
    DOI: 10.1023/A:1008396829502
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    References listed on IDEAS

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    1. Farzin Y. H., 1995. "Technological Change and the Dynamics of Resource Scarcity Measures," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 105-120, July.
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    Cited by:

    1. Nussbaumer, Patrick, 2009. "On the contribution of labelled Certified Emission Reductions to sustainable development: A multi-criteria evaluation of CDM projects," Energy Policy, Elsevier, vol. 37(1), pages 91-101, January.
    2. Urvashi Narain & Klaas Veld, 2008. "The Clean Development Mechanism’s Low-hanging Fruit Problem: When Might it Arise, and How Might it be Solved?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(3), pages 445-465, July.
    3. Theresa Stahlke, 2020. "The impact of the Clean Development Mechanism on developing countries’ commitment to mitigate climate change and its implications for the future," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(1), pages 107-125, January.
    4. Paolo Buonanno & Carlo Carraro & Efrem Castelnuovo & Marzio Galeotti, 2001. "Emission Trading Restrictions with Endogenous Technological Change," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 1(3), pages 379-395, July.
    5. Vogt-Schilb, Adrien & Hallegatte, Stephane, 2011. "When starting with the most expensive option makes sense : use and misuse of marginal abatement cost curves," Policy Research Working Paper Series 5803, The World Bank.
    6. Muller, Adrian, 2007. "How to make the clean development mechanism sustainable--The potential of rent extraction," Energy Policy, Elsevier, vol. 35(6), pages 3203-3212, June.
    7. Kolstad, Charles D. & Toman, Michael, 2005. "The Economics of Climate Policy," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 30, pages 1561-1618, Elsevier.
    8. BRECHET, Thierry & GERMAIN, Marc & VAN STEENBERGHE, Vincent, 2004. "The Clean Development Mechanism under the Kyoto Protocol and the `low-hanging fruits' issue," LIDAM Discussion Papers CORE 2004081, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. repec:hal:ciredw:hal-00916328 is not listed on IDEAS
    10. Perrings, Charles, 2014. "Environment and development economics 20 years on," Environment and Development Economics, Cambridge University Press, vol. 19(3), pages 333-366, June.
    11. Kim Olsen & Jyoti Painuly, 2002. "The Clean Development Mechanism: A Bane or a Boon for Developing Countries?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 2(3), pages 237-260, September.
    12. M. Germain & A. Magnus & V. Steenberghe, 2007. "How to design and use the clean development mechanism under the Kyoto Protocol? A developing country perspective," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(1), pages 13-30, September.
    13. Stephane Hallegatte & Mook Bangalore & Laura Bonzanigo & Marianne Fay & Tamaro Kane & Ulf Narloch & Julie Rozenberg & David Treguer & Adrien Vogt-Schilb, 2016. "Shock Waves," World Bank Publications - Books, The World Bank Group, number 22787.
    14. repec:max:cprpbr:39 is not listed on IDEAS
    15. repec:hal:wpaper:hal-00916328 is not listed on IDEAS
    16. DAUBANES Julien, 2009. "Changement climatique, instruments économiques et propositions pour un accord post-Kyoto : une synthèse," LERNA Working Papers 09.19.295, LERNA, University of Toulouse.
    17. Liu, Xuemei, 2008. "Rent extraction with a type-by-type scheme: An instrument to incorporate sustainable development into the CDM," Energy Policy, Elsevier, vol. 36(6), pages 1873-1878, June.
    18. Sabine Aresin, 2015. "Reduced Allowability and the Allocation of Emission Abatement," Working Papers tax-mpg-rps-2015-12, Max Planck Institute for Tax Law and Public Finance.
    19. Vogt-Schilb, Adrien & Hallegatte, Stéphane, 2014. "Marginal abatement cost curves and the optimal timing of mitigation measures," Energy Policy, Elsevier, vol. 66(C), pages 645-653.
    20. Stronzik, Marcus & Dette, Birgit & Herold, Anke, 2000. "Early crediting als klimapolitisches Instrument: Eine ökonomische und rechtliche Analyse," ZEW Dokumentationen 00-13, ZEW - Leibniz Centre for European Economic Research.

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