This paper studies optimal abatement of CO2 emissions, when investments in abatement measures are subject to adjustment costs. Decisions are made under uncertainty about the damages of climate change. Optimal abatement is determined in a Ramsey model for economic growth in which the damages of clima...
The preliminary emission scenarios in the Special Report on Emission Scenario (SRES) developed by the Intergovernmental Panel on Climate Change (IPCC), will eventually replace the old IS92 scenarios. By running these scenarios in a simple climate model (SCM) we estimate future temperature increase b...
This paper presents an overview of the development of wind energy in China. By examining the economics of windfarm development, it compares the economics of wind technology with other conventional energy technologies and analyzes the role of alternative policy instruments. Meanwhile, it identifies t...
The purpose of this paper is to illuminate potential problems with the flexibility mechanism in the Kyoto Protocol connected to the establishment of an enforcement system. The Kyoto mechanisms are emission trading, Joint Implementation with other Annex B countries and finally the Clean Development M...
The consequences of the Kyoto Protocol for the fossil fuel markets depend on which policy instruments that are used in order to reach the emission targets. This paper uses a numerical model to assess the significance of international emission trading for the oil, coal and gas markets. Three differen...
This paper is part of the joint CICERO and Fridtjof Nansen Institute (FNI) project “Towards a cost-effective climate policy: The international framework and Norwegian policy framework” (“Mot en effektiv klimapolitikk: Internasjonale rammebetingelser og norsk virkemiddelbruk”). The project, financed...
The Copenhagen Accord has been followed up by national pledges of greenhouse gas emissions reductions in the year 2020 without specifying measures to enforce actions. As a consequence, the capacity of parties to fulfil their obligations is of basic interest. This article outlines the effects of full...
In this paper we consider how to design a national tradable quota system to reduce emissions of climate gases when the regulator is concerned about the survival of specific firms. The problem is studied using a two-period model with a stochastic price in the second period. This enables us to include...
The Clean Development Mechanism (CDM), as defined in the Kyoto Protocol, has two objectives: to promote sustainable development in host developing countries, and to improve global cost-effectiveness by assisting developed countries in meeting their Kyoto targets. The aim of this paper is to explore...