IDEAS home Printed from https://ideas.repec.org/a/taf/tcpoxx/v4y2004i4p419-425.html
   My bibliography  Save this article

Sequestration rental policies and price path of carbon

Author

Listed:
  • Andrew G. Keeler

Abstract

Carbon rental has been suggested as a way of providing incentives to sequester carbon in biomass in the context of emissions trading systems for GHG emissions. A rental system works by issuing a credit for sequestered carbon that must be repaid after some fixed term. Rental systems avoid many of the difficulties of ensuring the permanence of sequestered carbon that exist in other institutional arrangements. This article adapts the results of Herzog et al. (2003) to argue that a rental system requires that carbon prices rise more slowly than the value of alternative investments in order to provide adequate incentives, and that there are good reasons to believe that this may not happen. Proponents need to directly address this potential difficulty in advancing arguments that carbon rental should be adopted as policy.

Suggested Citation

  • Andrew G. Keeler, 2004. "Sequestration rental policies and price path of carbon," Climate Policy, Taylor & Francis Journals, vol. 4(4), pages 419-425, December.
    • Handle: RePEc:taf:tcpoxx:v:4:y:2004:i:4:p:419-425
    DOI: 10.1080/14693062.2004.9685534
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/14693062.2004.9685534
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14693062.2004.9685534?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.

    References listed on IDEAS

    as
    1. Alan S. Manne & Richard G. Richels, 1999. "The Kyoto Protocol: A Cost-Effective Strategy for Meeting Environmental Objectives?," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 1-23.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Hong, Zhaofu & Chu, Chengbin & Zhang, Linda L. & Yu, Yugang, 2017. "Optimizing an emission trading scheme for local governments: A Stackelberg game model and hybrid algorithm," International Journal of Production Economics, Elsevier, vol. 193(C), pages 172-182.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carolyn Fischer & Richard D. Morgenstern, 2006. "Carbon Abatement Costs: Why the Wide Range of Estimates?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 73-86.
    2. Barbara Buchner & Carlo Carraro, 2006. "‘US, China and the Economics of Climate Negotiations’," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 6(1), pages 63-89, March.
    3. Barbara Buchner & Carlo Carraro, 2004. "Economic and environmental effectiveness of a technology-based climate protocol," Climate Policy, Taylor & Francis Journals, vol. 4(3), pages 229-248, September.
    4. Nordhaus, William, 2013. "Integrated Economic and Climate Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1069-1131, Elsevier.
    5. Carraro, Carlo & Bosello, Francesco & Buchner, Barbara & Raggi, Davide, 2003. "Can Equity Enhance Efficiency? Some Lessons from Climate Negotiations," CEPR Discussion Papers 3606, C.E.P.R. Discussion Papers.
    6. Ravallion, Martin & Lokshin, Michael, 2004. "Gainers and losers from trade reform in Morocco," Policy Research Working Paper Series 3368, The World Bank.
    7. Christoph Böhringer & Thomas Rutherford & Marco Springmann, 2015. "Clean-Development Investments: An Incentive-Compatible CGE Modelling Framework," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(4), pages 633-651, April.
    8. Kerkelä, Leena, 2009. "Essays on globalization - Policies in trade, development, resources and climate change," Research Reports P50, VATT Institute for Economic Research.
    9. Jean-Marc Burniaux & Joaquim Oliveira Martins, 2016. "Carbon Leakages: A General Equilibrium View," Studies in Economic Theory, in: Graciela Chichilnisky & Armon Rezai (ed.), The Economics of the Global Environment, pages 341-363, Springer.
    10. Loschel, Andreas, 2002. "Technological change in economic models of environmental policy: a survey," Ecological Economics, Elsevier, vol. 43(2-3), pages 105-126, December.
    11. Kuosmanen, Timo & Vöhringer, Frank & Dellink, Rob B., 2004. "A Proposal for the Attribution of Market Leakage to CDM Projects," HWWA Discussion Papers 262, Hamburg Institute of International Economics (HWWA).
    12. Ezcurra, Roberto, 2007. "Is there cross-country convergence in carbon dioxide emissions?," Energy Policy, Elsevier, vol. 35(2), pages 1363-1372, February.
    13. Emilio Padilla, 2002. "Limitations and biases of conventional analysis of climate change. Towards an analysis coherent with sustainable development," Working Papers wp0206, Department of Applied Economics at Universitat Autonoma of Barcelona.
    14. repec:zbw:hohpro:354 is not listed on IDEAS
    15. Carraro, Carlo & Buchner, Barbara & Cersosimo, Igor, 2002. "On the Consequences of the US Withdrawal from the Kyoto/Bonn Protocol," CEPR Discussion Papers 3239, C.E.P.R. Discussion Papers.
    16. Perrels, Adriaan, 2000. "Greenhouse Gas Policy Questions and Socio-economic Research Implications for Finland in a National and International Context," Discussion Papers 222, VATT Institute for Economic Research.
    17. Carlo Carraro & Barbara Buchner, 2006. "Parallel Climate Blocs. Incentives to cooperation in international climate negotiations," Working Papers 2006_45, Department of Economics, University of Venice "Ca' Foscari".
    18. P.G.C. Mensink, 2000. "Emulating a Long-Term Energy Scenario with the MERGE2 Model," Working Papers ir00029, International Institute for Applied Systems Analysis.
    19. Zhang, ZhongXiang, 1999. "The Kyoto Protocol: a cost-effective strategy for meeting environmental objective?: discussion," MPRA Paper 14049, University Library of Munich, Germany.
    20. Kopp, Raymond J., 2004. "Near-Term Greenhouse Gas Emissions Targets," Discussion Papers 10818, Resources for the Future.
    21. Carraro, Carlo & Buchner, Barbara, 2005. "Regional and Sub-Global Climate Blocs. A Game-Theoretic Perspective on Bottom-up Climate Regimes," CEPR Discussion Papers 5034, C.E.P.R. Discussion Papers.

    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:4:y:2004:i:4:p:419-425. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.