Please use this identifier to cite or link to this item:
Full metadata record
DC FieldValueLanguage
dc.contributor.authorDe Cian, Enricaen_US
dc.contributor.authorTavoni, Massimoen_US
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.publisher|aFondazione Eni Enrico Mattei (FEEM) |cMilanoen_US
dc.relation.ispartofseries|aNota di lavoro // Fondazione Eni Enrico Mattei: Sustainable development |x2010,33en_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.type|aWorking Paperen_US

Files in This Item:
229.31 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.