Analysis of post-Kyoto CO₂ emissions trading using marginal abatement curves
Name
MITJPSPGC_Rpt40.pdf
Size
193.84 KB
Format
Adobe PDF
Checksum (MD5)
7aa7adcaed5bef9c094e57e80cab396f
Date Issued
October 1998
Publisher
MIT Joint Program on the Science and Policy of Global Change
Series/Report no.
Report no. 40
Abstract
Marginal abatement curves (MACs) are often used heuristically to demonstrate the advantages of emissions trading. In this paper, the authors derive MACs from EPPA, the MIT Joint Program's computable general equilibrium model of global economic activity, energy use and CO₂ emissions, to analyze the benefits of emissions trading in achieving the emission reduction targets implied by the Kyoto Protocol. The magnitude and distribution of the gains from emissions trading are examined for both an Annex B market and for full global trading, as well as the effects of import limitations, non-competitive behavior, and less than fully efficient supply. In general, trading benefits all parties at least some, and from a global standpoint, the gains from trading are greater, the wider and less constrained is the market. The distribution of the gains from trading is, however, highly skewed in favor of those who would face the highest costs in the absence of emissions trading.
Description
Includes bibliographical references.
Abstract in HTML and technical report in HTML and PDF available on the Massachusetts Institute of Technology Joint Program on the Science and Policy of Global Change website (http://mit.edu/globalchange/www/)
Persistent DSpace Link
