IDEAS home Printed from https://ideas.repec.org/a/taf/tcpoxx/v20y2020i5p577-592.html
   My bibliography  Save this article

Evaluating policy success of emissions trading schemes in emerging economies: comparing the experiences of Korea and Kazakhstan

Author

Listed:
  • Peter Howie
  • Shreekant Gupta
  • Hojeong Park
  • Daulet Akmetov

Abstract

Emissions trading schemes have been increasing in popularity as a market-based instrument to meet CO2 reduction commitments. In this paper, we examine the emission trading schemes (ETS) of Kazakhstan and Korea, two emerging economies. We do so by using a policy success typology, which includes programme, process, political, temporal, distributional and capacity dimensions, and operationalizing criteria that the Partnership for Market Readiness and International Carbon Action Partnership have identified as key to effective ETS scheme design. We find that these criteria, or ETS success dimensions, align well with a typology of policy success. Using indicators developed to evaluate each ETS success dimension, we identify the positive and negative attributes of both Kazakhstan’s and Korea’s ETS and provide a qualitative ranking for each ETS success dimension. This evaluation and ranking allows us to identify necessary conditions for policy success in emerging market ETS: consultation with stakeholders in both the design and implementation stages; development of human and institutional home-grown capacity; mechanisms to solve illiquidity issues using market interventions; development of legitimacy from the perspective of business over time; implementation of policies that are complementary to an ETS; and flexibility to enable firms to manage periods of low revenues. Our findings provide important lessons for emerging economies planning to implement their own ETS, which may be more relevant than experiences from developed nations’ ETS.Key policy insights ETS success requires more than political will and reaching programme goals.Identifying and involving key business and public stakeholders is necessary for ETS success.Capacity building within the public and private sectors should be implemented from the design stage of an ETS.In emerging economies, where increases in energy prices could lead to social unrest, complementary policies are necessary to ensure cost pass-through.Liquidity problems likely be experienced during the initial stages of an ETS need to be addressed.

Suggested Citation

  • Peter Howie & Shreekant Gupta & Hojeong Park & Daulet Akmetov, 2020. "Evaluating policy success of emissions trading schemes in emerging economies: comparing the experiences of Korea and Kazakhstan," Climate Policy, Taylor & Francis Journals, vol. 20(5), pages 577-592, May.
    • Handle: RePEc:taf:tcpoxx:v:20:y:2020:i:5:p:577-592
    DOI: 10.1080/14693062.2020.1751030
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/14693062.2020.1751030
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14693062.2020.1751030?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zauresh Atakhanova & Peter Howie, 2022. "Women in Kazakhstan’s Energy Industries: Implications for Energy Transition," Energies, MDPI, vol. 15(13), pages 1-15, June.
    2. Matt Andrews, 2022. "What is public policy success, especially in development?," CID Working Papers 415, Center for International Development at Harvard University.
    3. Meng, Ming & Pang, Tingting & Li, Xinxin & Niu, Yi, 2024. "Production decision analysis of China's fossil fuel power enterprises in dual market conditions," Energy, Elsevier, vol. 292(C).
    4. Lee, Jaehyung & Jang, Heesun, 2022. "A real options study on cook stove CDM project under emission allowance price uncertainty," Journal of Asian Economics, Elsevier, vol. 80(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:tcpoxx:v:20:y:2020:i:5:p:577-592. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/tcpo20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.