Linkage of tradable permit systems in international climate policy architecture
By: Judson Jaffe, Robert N. Stavins ; prepared for The Harvard Project on International Climate Agreements
Contributors: Project on International Climate Agreements (Harvard University); Stavins, R. N. (Robert N.), 1948-; John F. Kennedy School of Government
Series: Discussion paper -- 08-07; Faculty research working papers series -- RWP08-053; Discussion paper (Harvard Project on International Climate Agreements) -- 08-07; Faculty research working paper series -- RWP08-053
Publisher: Harvard Project on International Climate Agreements
Published: 2008
Place of publication: Cambridge, Mass.]
Language: eng
Format: [electronic resource] /
Subjects: Emissions trading; International Environmental law
Description: Cap-and-trade systems have emerged as the preferred national and regional instrument for reducing emissions of greenhouse gases throughout the industrialized world, and the Clean Development Mechanism - an international emission-reduction-credit system - has developed a substantial constituency, despite some concerns about its performance. Because linkage between tradable permit systems can reduce compliance costs and improve market liquidity, there is great interest in linking cap-and-trade systems to each other, as well as to the CDM and other credit systems. We examine the benefits and concerns associated with various types of linkages, and analyze the near-term and long-term role that linkage may play in a future international climate policy architecture. In particular, we evaluate linkage in three potential roles: as an independent bottom-up architecture, as a step in the evolution of a top-down architecture, and as an ongoing element of a larger climate policy agreement. We also assess how the policy elements of climate negotiations can facilitate or impede linkages. Our analysis throughout is both positive and normative.
Notes: "September 2008."

Also issued in print as part of the Faculty Research Working Paper Series.

Includes bibliographical references (p. 21-24).

Text in pdf.

Mode of access: Internet.

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