Skip Navigation Links.

Search for publications:

Limit search to the fields

ECN publication
Verhandelbare CO2-emissierechten: een kwantitatieve analyse van een VER-systeem tussen Annex I landen
Published by: Publication date:
ECN Policy Studies 1-11-1997
ECN report number: Document type:
ECN-C--98-039 ECN publication
Number of pages: Full text:
53 Download PDF  

Tradeable emission permits can be a cost-effective way to achieveemission reductions between countries or firms. In this study, the role of trading CO2 emission permits between the Annex I countries of the FCCC is analysed. It is assumed that only countries are allowed to trade and that there is a perfect market without transaction costs and strategic behaviour. For several cases, the consequences for abatement costs, before and after trade, the volume of permits traded and emissions per capita are studied. Moreover, the gains from trade are determined. This study was undertaken before the Kyoto conference, therefore as a starting point for the different cases it was assumed that all countries should reduce their emissions with 10%. The cases studied are: a flat rate of 10% for each country; the differentiated EU distribution combined with a 10% reduction for the other OECD countries; and the so-called Triptych approach applied to all OECD countries. Two trading systems are considered, one covering only the OECD countries and one which also covers Middle and Eastern European countries (in a simplified way). Furthermore, two extreme cases are studied for the OECD trading scheme: equal costs (after trade) per unit of GNP and equal emission per capita (before trade). Tradeable emission permits will considerably reduce total costs compared with no trade by about 50%. The EU will considerably reduce total costs compared with no trade by about 50%. The EU will be a net exporter of permits in an OECD trading scheme (without Middle and Eastern Europe), mainly because the low costs possibilities for reduction of CO2 emissions in Germany and the United Kingdom. 13 refs

Back to List