TY - JOUR
T1 - What to expect from an international system of tradable permits for carbon emissions
AU - McKibbin, Warwick J.
AU - Shackleton, Robert
AU - Wilcoxen, Peter J.
PY - 1999/8
Y1 - 1999/8
N2 - We use an econometrically-estimated multi-region, multi-sector general equilibrium model of the world economy to examine the effects of using a system of internationally-tradable emissions permits to control world carbon dioxide emissions. We focus, in particular, on the effects of the system on flows of trade and international capital. Our results show that international trade and capital flows significantly alter projections of the domestic effects of emissions mitigation policy, compared with analyses that ignore international capital flows, and that under some systems of international permit trading the United States is likely to become a significant permit seller, the opposite of the conventional wisdom.
AB - We use an econometrically-estimated multi-region, multi-sector general equilibrium model of the world economy to examine the effects of using a system of internationally-tradable emissions permits to control world carbon dioxide emissions. We focus, in particular, on the effects of the system on flows of trade and international capital. Our results show that international trade and capital flows significantly alter projections of the domestic effects of emissions mitigation policy, compared with analyses that ignore international capital flows, and that under some systems of international permit trading the United States is likely to become a significant permit seller, the opposite of the conventional wisdom.
KW - Climate change
KW - Greenhouse gas emissions control
KW - Internationally tradable permits
UR - http://www.scopus.com/inward/record.url?scp=0033179971&partnerID=8YFLogxK
U2 - 10.1016/s0928-7655(99)00007-x
DO - 10.1016/s0928-7655(99)00007-x
M3 - Article
SN - 0928-7655
VL - 21
SP - 319
EP - 346
JO - Resource and Energy Economics
JF - Resource and Energy Economics
IS - 4
ER -