Will international emissions trading help achieve the objectives of the Paris Agreement?

Fujimori S, Kubota I, Dai H, Takahashi K, Hasegawa T, Liu J-Y, Hijioka Y, Masui T, et al. (2016). Will international emissions trading help achieve the objectives of the Paris Agreement? Environmental Research Letters 11 (10): e104001. DOI:10.1088/1748-9326/11/10/104001.

[img]
Preview
Text
Will international emissions trading help achieve the objectives of the Paris Agreement.pdf - Published Version
Available under License Creative Commons Attribution.

Download (1MB) | Preview

Abstract

Under the Paris Agreement, parties set and implement their own emissions targets as nationally determined contributions (NDCs) to tackle climate change. International carbon emissions trading is expected to reduce global mitigation costs. Here, we show the benefit of emissions trading under both NDCs and a more ambitious reduction scenario consistent with the 2 °C goal. The results show that the global welfare loss, which was measured based on estimated household consumption change in 2030, decreased by 75% (from 0.47% to 0.16%), as a consequence of achieving NDCs through emissions trading. Furthermore, achieving the 2 °C targets without emissions trading led to a global welfare loss of 1.4%–3.4%, depending on the burden-sharing scheme used, whereas emissions trading reduced the loss to around 1.5% (from 1.4% to 1.7%). These results indicate that emissions trading is a valuable option for the international system, enabling NDCs and more ambitious targets to be achieved in a cost-effective manner.

Item Type: Article
Research Programs: Energy (ENE)
Ecosystems Services and Management (ESM)
Depositing User: Luke Kirwan
Date Deposited: 30 Sep 2016 11:46
Last Modified: 25 Jan 2017 11:22
URI: http://pure.iiasa.ac.at/13854

Actions (login required)

View Item View Item

International Institute for Applied Systems Analysis (IIASA)
Schlossplatz 1, A-2361 Laxenburg, Austria
Phone: (+43 2236) 807 0 Fax:(+43 2236) 71 313