Welfare gains under tradable CO2 permits
Welfare gains under tradable CO2 permits
Most environmentalists favor the reduction in CO2 emissions but oppose international trade in emissions permits. Although economic theory provides a strong case in favor of trade in permits, there is little empirical evidence of the size of potential benefits.
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.
Tradable permits, greenhouse gases, carbon reductions, environmental kuznets curve
079237472x
Kluwer Academic Publishers
Karp, Larry S.
aeaa7666-ca88-4f47-85c5-81043cdd8e8a
Liu, Xuemei Liu
319ad16a-c615-49cb-8e6f-c22dc3b73179
2001
Karp, Larry S.
aeaa7666-ca88-4f47-85c5-81043cdd8e8a
Liu, Xuemei Liu
319ad16a-c615-49cb-8e6f-c22dc3b73179
Karp, Larry S. and Liu, Xuemei Liu
(2001)
Welfare gains under tradable CO2 permits.
In,
Moss, C., Rausser, G., Schmitz, A. and Taylor, T.
(eds.)
Agricultural Globalization, Trade and the Environment. Natural Resource Management and Policy.
Kluwer Academic Publishers.
Record type:
Book Section
Abstract
Most environmentalists favor the reduction in CO2 emissions but oppose international trade in emissions permits. Although economic theory provides a strong case in favor of trade in permits, there is little empirical evidence of the size of potential benefits.
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.
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More information
Published date: 2001
Keywords:
Tradable permits, greenhouse gases, carbon reductions, environmental kuznets curve
Identifiers
Local EPrints ID: 39711
URI: http://eprints.soton.ac.uk/id/eprint/39711
ISBN: 079237472x
PURE UUID: 5d04583d-5d14-4c05-be6a-cefd4c15053e
Catalogue record
Date deposited: 29 Jun 2006
Last modified: 11 Dec 2021 15:47
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Contributors
Author:
Larry S. Karp
Author:
Xuemei Liu Liu
Editor:
C. Moss
Editor:
G. Rausser
Editor:
A. Schmitz
Editor:
T. Taylor
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