Valuing Tradable CO2 Permits for OECD Countries
Data
01.01.1999
01.01.1999
Autori
Larry Karp, Xuemei Liu
Codice JEL
F17,Q28,Q43
F17,Q28,Q43
Parole chiave:
Tradable permits,Greenhouse gases,Carbon reductions,Environmental Kuznets curve
Tradable permits,Greenhouse gases,Carbon reductions,Environmental Kuznets curve
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
We estimate a structural model of OECD countries in which GDP and CO2 emissions are endogenous. We use the estimated model to simulate the price of tradable CO2 permits and the efficiency gains from trade. Our estimated prices are high, relative to previous estimates, and the efficiency gains are substantial. We also find, contrary to previous literature, that higher income is associated with reduced emissions.