"Post-Durban Climate Policy Architecture Based on Linkage of Cap-and-Trade Systems"
Discussion Paper 2012-51, Harvard Project on Climate Agreements, Belfer Center for Science and International Affairs, Harvard Kennedy School
May 2012
Authors: Matthew Ranson, Robert N. Stavins, Albert Pratt Professor of Business and Government; Member of the Board; Director, Harvard Project on Climate Agreements
The Harvard Project on Climate Agreements Discussion Paper Series
Belfer Center Programs or Projects: Harvard Project on Climate Agreements
ABSTRACT
The outcome of the December 2011 United Nations climate negotiations in Durban, South Africa, provides an important new opportunity to move toward an international climate policy architecture that is capable of delivering broad international participation and significant global CO2 emissions reductions at reasonable cost. We evaluate one important component of potential climate policy architecture for the post-Durban era: links among independent tradable permit systems for greenhouse gases. Because linkage reduces the cost of achieving given targets, there is tremendous pressure to link existing and planned cap-and-trade systems, and in fact, a number of links already or will soon exist. We draw on recent political and economic experience with linkage to evaluate potential roles that linkage may play in post-Durban international climate policy, both in a near-term, de facto architecture of indirect links between regional, national, and sub-national cap-and-trade systems, and in longer-term, more comprehensive bottom-up architecture of direct links. Although linkage will certainly help to reduce long-term abatement costs, it may also serve as an effective mechanism for building institutional and political structure to support a future climate agreement.
Matthew Ranson, Harvard Kennedy School
Robert N. Stavins, Harvard Kennedy School
For more information about this publication please contact the Harvard Project on Climate Agreements Coordinator at 617-496-8054.
For Academic Citation:
| MOST VIEWED PUBLICATIONS | POLICY BRIEF: AUTO EMISSIONS |
|---|---|
Policy Options for Reducing Oil Consumption and Greenhouse-Gas Emissions from the U.S. Transportation Sector The goal of this paper is to contribute to the current policy debate about how to effectively limit or reduce oil consumption and greenhouse gas emissions from the U.S. transportation sector. |
