Empirical Modeling of the Economy and the Environment

ZhongXiang Zhang (East-West Center, Honolulu) uses a global model based on marginal abatement cost curves for 12 world regions to estimate the contributions of the three flexibility mechanisms under the Kyoto Prool, i. e. emissions trading, joint implementation, and the clean development mechanism. He shows how the reduction in compliance costs of industrialized regions depends on the extent to which the flexibility mechanisms will be available. Not surprisingly, the fewer the restrictions ...