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Joint Implementation in Climate Change Policy

Author

Listed:
  • Suzi Kerr

    (Motu Economic and Public Policy Research)

  • Catherine Leining

    (Center for Clean Air Policy, USA)

Abstract
The textbook economists' model of a tradable permit system cannot usually be applied perfectly at either the domestic or international scale because of the difficulty and/or expense of defining allocations to and monitoring emissions of some groups, as well as for political reasons. It may be impossible to bring these groups fully into a tradeable permit system but it is often possible to find compromise solutions to gain some benefits from trade. This paper explores this problem in the context of the Joint Implementation mechanism associated with the Kyoto Protocol. This paper starts by outlining the current international rules governing Joint Implementation. We provide a summary of key jargon for those who are unfamiliar with the complex Kyoto language. We then discuss two key international issues that are still unresolved: baseline development and monitoring. We then turn to domestic governance of Joint Implementation and how the private sector might engage in Joint Implementation. At this point we consider how Joint Implementation fits within the suite of Kyoto flexibility mechanisms, why sellers and buyers might choose to engage in each, and how the different mechanisms might interact in the market for tradeable units. We conclude with some thoughts about productive directions for future research.

Suggested Citation

  • Suzi Kerr & Catherine Leining, 2003. "Joint Implementation in Climate Change Policy," Working Papers 03_04, Motu Economic and Public Policy Research.
    • Handle: RePEc:mtu:wpaper:03_04
    as

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    File URL: https://motu-www.motu.org.nz/wpapers/03_04.pdf
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    References listed on IDEAS

    as
    1. Wytze van der Gaast, 2002. "The Scope for Joint Implementation in the EU Candidate Countries," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 2(3), pages 275-290, September.
    2. Fischer, Carolyn, 2001. "Rebating Environmental Policy Revenues: Output-Based Allocations and Tradable Performance Standards," Discussion Papers 10709, Resources for the Future.
    3. Franz Wirl & Claus Huber & I.O Walker, 1998. "Joint Implementation: Strategic Reactions and Possible Remedies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(2), pages 203-224, September.
    4. Bohm, Peter & Carlen, Bjorn, 1999. "Emission quota trade among the few: laboratory evidence of joint implementation among committed countries," Resource and Energy Economics, Elsevier, vol. 21(1), pages 43-66, January.
    5. Fischer, Carolyn, 2002. "Determining Project-Based Emissions Baselines with Incomplete Information," RFF Working Paper Series dp-02-23, Resources for the Future.
    6. Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey,Elizabeth M., 2005. "Markets for Clean Air," Cambridge Books, Cambridge University Press, number 9780521023894, January.
      • Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey,Elizabeth M., 2000. "Markets for Clean Air," Cambridge Books, Cambridge University Press, number 9780521660839, January.
    7. Rentz, Henning, 1998. "Joint implementation and the question of `additionality'--a proposal for a pragmatic approach to identify possible joint implementation projects," Energy Policy, Elsevier, vol. 26(4), pages 275-279, March.
    8. Cathrine Hagem, 1996. "Joint implementation under asymmetric information and strategic behavior," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 8(4), pages 431-447, December.
    9. Parkinson, Stuart & Begg, Katie & Bailey, Peter & Jackson, Tim, 1999. "JI/CDM crediting under the Kyoto Protocol: does `interim period banking' help or hinder GHG emissions reduction?," Energy Policy, Elsevier, vol. 27(3), pages 129-136, March.
    10. Josef Janssen, 1999. "(Self-) Enforcement of Joint Implementation and Clean Development Mechanism Contracts," Working Papers 1999.14, Fondazione Eni Enrico Mattei.
    11. Suzi Kerr (ed.), 2000. "Global Emissions Trading," Books, Edward Elgar Publishing, number 2145.
    12. Woerdman, Edwin, 2000. "Implementing the Kyoto protocol: why JI and CDM show more promise than international emissions trading," Energy Policy, Elsevier, vol. 28(1), pages 29-38, January.
    13. Steve Sorrell & Jim Skea (ed.), 1999. "Pollution for Sale," Books, Edward Elgar Publishing, number 1696.
    14. Zhang, ZhongXiang & Nentjes, Andries, 1997. "International tradable carbon permits as a strong form of joint implementation," MPRA Paper 13300, University Library of Munich, Germany.
    15. Geres, Roland & Michaelowa, Axel, 2002. "A qualitative method to consider leakage effects from CDM and JI projects," Energy Policy, Elsevier, vol. 30(6), pages 461-463, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Eric Karpas & Suzi Kerr, 2011. "Preliminary Evidence on Responses to the New Zealand Forestry Emissions Trading Scheme," Working Papers 11_09, Motu Economic and Public Policy Research.
    2. Michelle Poland & David C Maré, 2005. "Defining Geographic Communities," Urban/Regional 0509016, University Library of Munich, Germany.
    3. Grimes, Arthur, 2005. "Regional and industry cycles in Australasia: Implications for a common currency," Journal of Asian Economics, Elsevier, vol. 16(3), pages 380-397, June.
    4. Arthur Grimes, 2006. "Intra & inter-regional industry shocks: A new metric with application to Australasian currency union," New Zealand Economic Papers, Taylor & Francis Journals, vol. 40(1), pages 23-44.
    5. David C Maré, 2005. "Indirect Effects of Active Labour Market Policies," HEW 0509004, University Library of Munich, Germany.

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    More about this item

    Keywords

    Climate; Joint Implementation; tradeable permits; emissions trading;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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