This paper explores the likely impact of emissions trading design on transaction costs. Transaction costs include both the costs for the private sector to comply with the scheme rules and the costs of scheme administration. In economic theory transaction costs are often assumed to be zero. But...

The social and environmental implications of plantations in the CDM are analysed under a hypothetical laissez faire approach and a proactive approach to Sustainable Development (SD), bounded by existing COP7 agreements and efficiency and equity considerations. Implications for timber rich,...

Given that China is already the world’s largest carbon emitter and its emissions continue to rise rapidly in line with its industrialization and urbanization, there is no disagreement that China eventually needs to take on binding greenhouse gas emissions caps. However, the key challenges are...

The Clean Development Mechanism (CDM) established under the Kyoto Protocol allows industrialized Annex I countries to offset part of their domestic emissions by investing in emissionsreduction projects in developing non-Annex I countries. We present a novel CDM modelling framework which can be...

This paper examines the Clean Development Mechanism (CDM) of the Kyoto Protocol and its welfare implications for the countries engaging in it. It uses a simultaneous public good game, the public good being emission abatement, to asses the impact of the CDM on the public good provision...