 Is there potential for government participation in flexibility mechanisms? - Evaluating the Finnish caseJuha Honkatukia No 331472, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project Abstract: The European directives on emission trade and flexible mechanisms are making new kinds of economic instruments available for the implementation of climate policies. In addition to the EUwide trade in emission rights, governments will have the option to allow joint implementation between firms in the member countries. However, they will also have to define the scope for the use of these flexibility mechanisms. This study considers the effects of using these instruments in Finland, baring in mind the role the government might have in connection with the various mechanisms. There are several ways in which the government can affect the cost effectiveness of climate policies by either enhancing the functioning of the markets or by directly participating in them. The study uses the economic-engineering EV-model to assess three scenarios for government participation. We find that there is significant potential for reducing the costs of emission reductions by direct government participation in flexibility mechanisms especially in the long run. Keywords: Political Economy; International Relations/Trade (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:331472 Access Statistics for this paper More papers in Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.