Kyoto Protocol and Emission Trading: Does the US make a difference?
Alessandro Lanza, Umberto Ciorba, Francesco Pauli
Environmental policy,Kyoto protocol,international agreements,CO2 emission,emission trading,marginal abatement cost
Climate Change and Sustainable Development
This paper presents an estimate of the costs of reducing CO2 emissions asagreed in Kyoto by Annex 1 countries. Unlike most of the existing literature, this paper uses an Almost Ideal Demand System model for energyproducts to estimate the role of each country within the Annex 1 market. A major result is the provision of marginal (and total) abatement costs foreach. The recent position of the US is also discussed, showing the cost ofsome alternative outcomes.