We propose a realistic approach to climate policy based on the Copenhagen Agreement to reduce Greenhouse Gases (GHGs) emissions. We assess by how much the non-binding, although official, commitments to reduce emissions made in Copenhagen will affect the level of world GHGs emissions in 2020. Our...

The objective set by the IPPC of limiting the increase in average global temperature to +2°C compared with the pre–industrial era is now accepted by all concerned. This ambitious objective was recognised at the Copenhagen Conference in 2009 and confirmed at Cancun in 2010. There are still no...

This volume was prepared by Rahel Aichele while she was working at the ifo Institute. It was completed in December 2012 and accepted as a doctoral thesis by the Department of Economics at the University of Munich. It includes five self-contained chapters. The chapters investigate how, in a...

Following the Earth Summit in Rio de Janeiro in 1992, countries took up the difficult task of finding a common approach that would slow down the build-up of greenhouse gas emissions in the atmosphere and delay changes to the planet's climate. A widespread concern among many of the participants...

Kyoto Protocol of the United Nations Framework Convention on Climate Change (UNFCCC) is a milestone towards global carbon mitigation efforts which resulted in the establishment of carbon markets. Pakistan has ratified Kyoto Protocol in 1997 and implemented it in 2005. It contributes towards...

The CDM plays an important role in the international GHG reduction activities. However, the distribution of CDM projects has been quite biased. Hence, considering the current distributional imbalance, this study was conducted aiming to identify the determinants of CDM project hosting in order to...

The CDM has promoted GHG reduction activities in developing countries. There is, however, a controversial issue of an unequal distribution of CDM benefits among developing nations. To date, some emerging economies have been receiving the majority of CERs while most LDCs have few of them. This...

This paper examines the cost structure of certified emission reductions (CERs) through various types of projects under the Clean Development Mechanism (CDM) of the Kyoto Protocol. Using the CDM project data, the costs of CERs and their variation across technology and over time and space are...

We describe important institutions that shape climate change policies together with a set of key market-reliant instruments. We selectively review the related economic literature, emphasizing empirical studies that assess the efficacy of current policies and the workings of policy-dependent...

With countries from around the world set to meet in Copenhagen to try to hammer out a post-2012 climate change agreement, no one would disagree that a U.S. commitment to cut greenhouse gas emissions is essential to such a global pact. However, despite U.S. president Obama’s recent announcement...