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...
In this paper I try to clarify the background and arguments behind the EU position on emissions trading in negotiating the Kyoto Protocol and their suggestions of how the supplementarity cap in the Kyoto agreement can be operationalized. I discuss economic arguments for restricting quota trade with...
There is a concern in many countries that a domestic tradable quota system for greenhouse gases, where all emitters must pay for their quotas, may lead to closures of emissions-intensive industrial companies. Allocating quotas free of charge to companies operating in competitive markets has been sug...