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The Potential Effects of International Carbon Emissions Permit Trading

Warwick McKibbin (), Robert Shackleton and Peter Wilcoxen

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

Abstract: We use an econometrically estimated multi-region, multi-sector general equilibrium model of the world economy to examine the effects of the tradable emissions permit system proposed in the 1997 Kyoto protocol, under various assumptions about that extent of international permit trading. We focus, in particular, on the effects of the system on international trade and capital flows. Our results suggest that consideration of these flows significantly affects estimates of the domestic effects of the emissions mitigation policy, compared with analyses that ignore international capital flows.

Date: 1998-10
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Persistent link: https://EconPapers.repec.org/RePEc:pas:papers:1998-09

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