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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/58946 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/58946 http://eprints.org/relation/isIndexCodesVersionOf https://pure.iiasa.ac.at/id/document/58946 archive 351 disk0/00/00/70/83 2016-01-15 02:16:04 2021-08-27 17:18:25 2016-01-15 02:16:04 monograph show 2 Godal O. 7812 Ermoliev Y.M. 1445 Klaassen G. 1355 Obersteiner M. 7255 0000-0001-6981-2769 pub iis_ecn iis_ene iis_env prog_rms The Kyoto Protocol foresees emission trading but does not yet specify verification of (uncertain) emissions. This paper analyses a setting in which parties can meet their emission targets by reducing emissions, by investing in monitoring (reducing uncertainty of emissions) or by (bilaterally) trading permits. We derive the optimality conditions and carry out various numerical simulations. Our applications suggest that including uncertainty could increase compliance costs for the USA, Japan and the European Union. Central Europe and the Former Soviet Union might be able to gain from the trading due to higher permit prices. Emissions trading could also lower aggregate uncertainty on emissions. 2003 published RR-03-008. Reprinted from Environmental and Resource Economics, 25(2):151-169 [2003]. RP-03-008 Reprinted from Environmental and Resource Economics; 25(2):151-169 [2003] 10 ar03 1286 338 1376 219 public research_reprint Environmental and Resource Economics 25 2 IIASA, Laxenburg, Austria 151-169 19 TRUE FALSE info:eu-repo/semantics/book