Clean-Development Investments : An Incentive-Compatible CGE Modeling Framework

Bö ; hringer, Christoph ; Rutherford, Thomas F. ; Springmann, Marco

World Bank, Washington, DC

关键词: ABATEMENT;    ABATEMENT COSTS;    ABATEMENT OPTIONS;    APPROACH;    ARBITRAGE;   

DOI  :  10.1596/1813-9450-6720
RP-ID  :  WPS6720

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The Clean Development Mechanismestablished under the Kyoto Protocol allows industrializedAnnex I countries to offset part of their domestic emissionsby investing in emissions-reduction projects in developingnon-Annex I countries. Computable general equilibriumanalysis of the Clean Development Mechanism's impactsso far mimics the Clean Development Mechanism as a sectoremissions trading scheme, thereby overstating its potentialto save climate change mitigation costs. This study developsa novel approach that represents the Clean DevelopmentMechanism more realistically by compensating CleanDevelopment Mechanism implementing sectors for additionalabatement cost and by endogenizing Clean DevelopmentMechanism credits as a function of investment.Comparedwith previous representations, the proposed approach is moreconsistent in its incentive structure and investmentcharacteristics at the sector level. An empiricalapplication of the new methodology demonstrates that theeconomy-wide cost savings from the Clean DevelopmentMechanism tend to be lower than suggested by conventionalmodeling approaches while Clean Development Mechanismimplementing sectors do not lose in output.