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dc.contributor.authorDe Cian, Enricaen_US
dc.contributor.authorTavoni, Massimoen_US
dc.date.accessioned2010-11-23en_US
dc.date.accessioned2010-12-22T10:42:41Z-
dc.date.available2010-12-22T10:42:41Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/43477-
dc.description.abstractInternational carbon offsets have been promoted since the Kyoto Protocol and an increasing number of countries have implemented or proposed cap-and-trade schemes with international trading, even though with quantitative or qualitative restrictions. Those limits reflect the trade-off between economic efficiency, distributional issues, and the need for additionality of foreign mitigation measures. Ceilings are also justified on the ground that international offsets undermine the capability of climate policy to induce and diffuse technological change. This paper addresses these issues in a second-best setting that explicitly considers the interplay between multiple externalities. We evaluate numerically how limits to the size, the timing, and the participation in an international carbon market affect the macroeconomic costs of climate policy, international financial transfers, and the incentive to carry out innovation. Results indicate that when constraints on international offsets are moderate, such as limiting their use to at most 15% of regional abatement, efficiency losses are small because they are partly compensated by more technological change and energy market effects, although specific regional patterns are identified. Regarding financial outflows from OECD countries, already a 15% ceiling would limit financial transfers significantly. Provisions of this kind are in line with some of the most recent policy proposals in OECD countries.en_US
dc.language.isoengen_US
dc.publisherFondazione Eni Enrico Mattei Milanoen_US
dc.relation.ispartofseriesNota di lavoro // Fondazione Eni Enrico Mattei: Sustainable development 2010,33en_US
dc.subject.jelQ54en_US
dc.subject.jelQ55en_US
dc.subject.jelQ43en_US
dc.subject.jelH23en_US
dc.subject.ddc330en_US
dc.subject.keywordEnergy-economy Modellingen_US
dc.subject.keywordClimate Policyen_US
dc.subject.keywordTechnology Spilloversen_US
dc.titleThe role of international carbon offsets in a second-best climate policy: a numerical evaluationen_US
dc.typeWorking Paperen_US
dc.identifier.ppn640336442en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:FEEM Working Papers, Fondazione Eni Enrico Mattei

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