Emissions Trading Regimes and Incentives to Participate in International Climate Agreements
Data
01.01.2003
01.01.2003
Autori
Carlo Carraro, Barbara Buchner
Codice JEL
C72,H23,Q25,Q28
C72,H23,Q25,Q28
Parole chiave:
Agreements,Climate,Incentives,Negotiations,Policy
Agreements,Climate,Incentives,Negotiations,Policy
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
This paper analyses whether different emissions trading regimes provide different incentives to participate in a cooperative climate agreement. Different incentive structures are discussed for those countries, namely the US, Russia and China, that are most important in the climate negotiation process. Our analysis confirms the conjecture that, by appropriately designing the emission trading regime, it is possible to enhance the incentives to participate in a climate agreement. Therefore, participation and optimal policy should be jointly analysed. Moreover, our results show that the US, Russia and China have different most preferred climate coalitions and therefore adopt conflicting negotiation strategies.