Carbon offsets with endogenous environmental policy
Energy Economics, 2011, vol. 33, issue 2, 371-378
Interests in obtaining carbon offsets in host countries for CDM projects may serve as an obstacle to implementing more stringent general environmental policies in the same countries. A relatively lax environmental policy, whereby carbon emissions remain high, can be advantageous for such countries as it leaves them with a higher than otherwise scope for future emissions reductions through CDM and other offset projects. In this paper, the potential to affect the availability of future CDM projects is shown to distort environmental and energy policies of CDM host countries, in two ways. First, policies to reduce the use of fossil energy are weakened. This in turn weakens private sector incentives to switch to lower-carbon technology through CDM projects. CDM host governments then also find it attractive to subsidize this switch, in order to maximize the country's advantage from the CDM.
Keywords: Offset; markets; Clean; Development; Mechanism; Environmental; taxes; Endogenous; environmental; policy (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Carbon offsets with endogenous environmental policy (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:33:y:2011:i:2:p:371-378
Access Statistics for this article
Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant
More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().