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NBER Working Papers and Publications
|January 2014||Linkage of Greenhouse Gas Emissions Trading Systems: Learning from Experience|
with Robert Stavins: w19824
The last ten years have seen the growth of linkages between many of the world's cap-and-trade systems for greenhouse gases (GHGs), both directly between systems, and indirectly via connections to credit systems such as the Clean Development Mechanism. If nations have tried to act in their own self-interest, this proliferation of linkages implies that for many nations, the expected benefits of linkage outweighed expected costs. In this paper, we draw on the past decade of experience with carbon markets to test a series of hypotheses about why systems have demonstrated this revealed preference for linking.
Linkage is a multi-faceted policy decision that can be used by political jurisdictions to achieve a variety of objectives, and we find evidence that many economic, political, and strategi...
Published: in Climate Policy (DOI: 10.1080/14693062.2014.997658). citation courtesy of
|June 2012||Post-Durban Climate Policy Architecture Based on Linkage of Cap-and-Trade Systems|
with Robert N. Stavins: w18140
The outcome of the December 2011 United Nations climate negotiations in Durban, South Africa, provides an important new opportunity to move toward an international climate policy architecture that is capable of delivering broad international participation and significant global CO2 emissions reductions at reasonable cost. We evaluate one important component of potential climate policy architecture for the post-Durban era: links among independent tradable permit systems for greenhouse gases. Because linkage reduces the cost of achieving given targets, there is tremendous pressure to link existing and planned cap-and-trade systems, and in fact, a number of links already or will soon exist. We draw on recent political and economic experience with linkage to evaluate potential roles that l...
Published: APost-Durban Climate Policy Architecture Based on Linkage of Cap-and-Trade Systems.@ The Chicago Journal of International Law, Volume 13, Number 2, Winter 2013, pp. 403-438. With M. Ranson. [A-76]