Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-00692486.html
   My bibliography  Save this paper

Sectoral Targets for Developing Countries: Combining "Common but differentiated Responsibilities with meaningful Participation"

Author

Listed:
  • Meriem Hamdi-Cherif

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Céline Guivarch

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Philippe Quirion

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract
Although a global cap-and-trade system is seen by many researchers as the most cost-efficient solution to reduce greenhouse gas (GHG) emissions, the governments of developing countries refuse to enter into such a system in the short term. Many scholars and stakeholders, including the European Commission, have thus proposed various types of commitments for developing countries that appear less stringent, such as sectoral approaches. A macroeconomic assessment of such a sectoral approach is provided for developing countries. Two policy scenarios in particular are assessed, in which developed countries continue with Kyoto-type absolute commitments, while developing countries adopt an emissions trading system limited to electricity generation and linked to developed countries' cap-and-trade systems. In the first scenario, CO2 allowances are auctioned by the government, which distributes its revenues as a lump sum to households. In a second scenario, the auction revenues are used to reduce taxes on, or to give subsidies to, electricity generation. The quantitative analysis, conducted with a hybrid general equilibrium model, shows that such options provide almost as much emissions reduction as a global cap-and-trade system. Moreover, in the second sectoral scenario, GDP losses in developing countries are much lower than with a global cap-and-trade system, as is also the effect on the electricity price.

Suggested Citation

  • Meriem Hamdi-Cherif & Céline Guivarch & Philippe Quirion, 2011. "Sectoral Targets for Developing Countries: Combining "Common but differentiated Responsibilities with meaningful Participation"," Post-Print halshs-00692486, HAL.
    • Handle: RePEc:hal:journl:halshs-00692486
    DOI: 10.3763/cpol.2009.0070
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00692486
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-00692486/document
    Download Restriction: no
    File URL: https://libkey.io/10.3763/cpol.2009.0070?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Robert W. Hahn, 1984. "Market Power and Transferable Property Rights," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(4), pages 753-765.
    2. Philibert, Cedric, 2000. "How could emissions trading benefit developing countries," Energy Policy, Elsevier, vol. 28(13), pages 947-956, November.
    3. Martin L. Weitzman, 1974. "Prices vs. Quantities," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(4), pages 477-491.
    4. Philippe Quirion, 2009. "Historic versus output-based allocation of GHG tradable allowances: a comparison," Climate Policy, Taylor & Francis Journals, vol. 9(6), pages 575-592, November.
    5. Valentina Bosetti & David G. Victor, 2011. "Politics and Economics of Second-Best Regulation of Greenhouse Gases: The Importance of Regulatory Credibility," The Energy Journal, , vol. 32(1), pages 1-24, January.
    6. Mathy, Sandrine & Guivarch, Céline, 2010. "Climate policies in a second-best world--A case study on India," Energy Policy, Elsevier, vol. 38(3), pages 1519-1528, March.
    7. repec:bla:scandj:v:83:y:1981:i:2:p:165-79 is not listed on IDEAS
    8. Olivier Sassi & Renaud Crassous & Jean-Charles Hourcade & Vincent Gitz & Henri Waisman & Celine Guivarch, 2010. "IMACLIM-R: a modelling framework to simulate sustainable development pathways," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 10(1/2), pages 5-24.
    9. Warwick J. McKibbin & Martin T. Ross & Robert Shackleton & Peter J. Wilcoxen, 1999. "Emissions Trading, Capital Flows and the Kyoto Protocol," The Energy Journal, , vol. 20(1_suppl), pages 287-333, June.
    10. Strand, Jon, 2009. ""Revenue management"effects related to financial flows generated by climate policy," Policy Research Working Paper Series 5053, The World Bank.
    11. Céline Guivarch & Renaud Crassous & Olivier Sassi & Stéphane Hallegatte, 2009. "The costs of climate policies in a second best world with labour market," Working Papers hal-00866429, HAL.
    12. Fischer, Carolyn, 2001. "Rebating Environmental Policy Revenues: Output-Based Allocations and Tradable Performance Standards," RFF Working Paper Series dp-01-22, Resources for the Future.
    13. Hiroyuki, KAWASHIMA, 2009. "World Food Production and Biomass Energy Outlook for 2050," Journal of Rural Economics, Agricultural Economics Society of Japan, vol. 81(2), pages 1-11, September.
    14. Jake Schmidt & Ned Helme & Jin Lee & Mark Houdashelt, 2008. "Sector-based approach to the post-2012 climate change policy architecture," Climate Policy, Taylor & Francis Journals, vol. 8(5), pages 494-515, September.
    15. Guivarch, Céline & Hallegatte, Stéphane & Crassous, Renaud, 2009. "The resilience of the Indian economy to rising oil prices as a validation test for a global energy-environment-economy CGE model," Energy Policy, Elsevier, vol. 37(11), pages 4259-4266, November.
    16. Hourcade, Jean-Charles, 1993. "Modelling long-run scenarios : Methodology lessons from a prospective study on a low CO2 intensive country," Energy Policy, Elsevier, vol. 21(3), pages 309-326, March.
    17. Berndt, Ernst R & Wood, David O, 1975. "Technology, Prices, and the Derived Demand for Energy," The Review of Economics and Statistics, MIT Press, vol. 57(3), pages 259-268, August.
    18. Jonas O. Meckling & Gu Yoon Chung, 2009. "Sectoral approaches for a post-2012 climate regime: a taxonomy," Climate Policy, Taylor & Francis Journals, vol. 9(6), pages 652-668, November.
    19. Christa Clapp & Katia Karousakis & Barbara Buchner & Jean Château, 2009. "National and Sectoral GHG Mitigation Potential: A Comparison Across Models," OECD/IEA Climate Change Expert Group Papers 2009/7, OECD Publishing.
    20. Céline Guivarch & Renaud Crassous & Olivier Sassi & Stéphane Hallegatte, 2011. "The costs of climate policies in a second-best world with labour market imperfections," Climate Policy, Taylor & Francis Journals, vol. 11(1), pages 768-788, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Claire Gavard & Niven Winchester & Henry Jacoby & Sergey Paltsev, 2011. "What To Expect From Sectoral Trading: A Us-China Example," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 9-26.
    2. Guivarch, Céline & Monjon, Stéphanie, 2017. "Identifying the main uncertainty drivers of energy security in a low-carbon world: The case of Europe," Energy Economics, Elsevier, vol. 64(C), pages 530-541.
    3. Diniz Oliveira, Thais & Costa Gurgel, Angelo & Tonry, Steve, 2021. "Potential trading partners of a brazilian emissions trading scheme: The effects of linking with a developed region (Europe) and two developing regions (Latin America and China)," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    4. Li, Jun & Wang, Xin, 2012. "Energy and climate policy in China's twelfth five-year plan: A paradigm shift," Energy Policy, Elsevier, vol. 41(C), pages 519-528.
    5. Li, Jun & Hamdi-Cherif, Meriem & Cassen, Christophe, 2017. "Aligning domestic policies with international coordination in a post-Paris global climate regime: A case for China," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 258-274.
    6. Hamdi-Cherif, Meriem & Waisman, Henri, 2013. "The costs of a global climate agreement for China: A tale of carbon price, timing of emissions reduction and quota allocation," Conference papers 332306, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Gregory Cook & Jean-Pierre Ponssard, 2011. "A proposal for the renewal of sectoral approaches building on the Cement Sustainability Initiative," Climate Policy, Taylor & Francis Journals, vol. 11(5), pages 1246-1256, September.
    8. Gavard, Claire & Kirat, Djamel, 2018. "Flexibility in the market for international carbon credits and price dynamics difference with European allowances," Energy Economics, Elsevier, vol. 76(C), pages 504-518.
    9. Diniz Oliveira, Thais & Costa Gurgel, Angelo & Tonry, Steve, 2019. "International market mechanisms under the Paris Agreement: A cooperation between Brazil and Europe," Energy Policy, Elsevier, vol. 129(C), pages 397-409.
    10. Vicki Duscha & Everett B. Peterson & Joachim Schleich & Katja Schumacher, 2019. "Sectoral Targets To Address Competitiveness — A Cge Analysis With Focus On The Global Steel Sector," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 1-27, February.
    11. Gavard, Claire & Winchester, Niven & Paltsev, Sergey, 2016. "Limited trading of emissions permits as a climate cooperation mechanism? US–China and EU–China examples," Energy Economics, Elsevier, vol. 58(C), pages 95-104.
    12. Guy Meunier & Jean-Pierre Ponssard, 2012. "A Sectoral Approach Balancing Global Efficiency and Equity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(4), pages 533-552, December.
    13. DURAND-LASSERVE, Olivier & Pierru , Axel & SMEERS, Yves, 2012. "Sensitivity of policy simulation to benchmark scenarios in CGE models: illustration with carbon leakage," LIDAM Discussion Papers CORE 2012063, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    14. Wang, Derek D. & Sueyoshi, Toshiyuki, 2018. "Climate change mitigation targets set by global firms: Overview and implications for renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 386-398.
    15. Djamel KIRAT & Claire GAVARD, 2020. "Short-term impacts of carbon offsetting on emissions trading schemes: empirical insights from the EU experience," LEO Working Papers / DR LEO 2821, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    16. Tietenberg, Tom, 2010. "Cap-and-Trade: The Evolution of an Economic Idea," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 39(3), pages 1-9, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ruben Bibas & C. Cassen & Renaud Crassous & Céline Guivarch & Meriem Hamdi-Cherif & Jean Charles Hourcade & Florian Leblanc & Aurélie Méjean & Eoin Ó Broin & Julie Rozenberg & Olivier Sassi & Adrien V, 2022. "IMpact Assessment of CLIMate policies with IMACLIM-R 1.1. Model documentation version 1.1," Working Papers hal-03702627, HAL.
    2. Guivarch, Céline & Monjon, Stéphanie, 2017. "Identifying the main uncertainty drivers of energy security in a low-carbon world: The case of Europe," Energy Economics, Elsevier, vol. 64(C), pages 530-541.
    3. Roger Fouquet, 2012. "Economics of Energy and Climate Change: Origins, Developments and Growth," Working Papers 2012-08, BC3.
    4. Bibas, Ruben & Méjean, Aurélie & Hamdi-Cherif, Meriem, 2015. "Energy efficiency policies and the timing of action: An assessment of climate mitigation costs," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 137-152.
    5. Fabien Roques & Olivier Sassi & Céline Guivarch & Henri Waisman & Renaud Crassous & Jean Charles Hourcade, 2009. "Integrated Modelling of Economic-Energy-Environment Scenarios - The Impact of China and India's Economic Growth on Energy Use and CO2 Emissions," Working Papers hal-00866448, HAL.
    6. Ruben Bibas & Aurélie Méjean, 2012. "Negative emissions and ambitious climate policies in a second best world: A general equilibrium assessment of technology options in the electricity sector," EcoMod2012 4569, EcoMod.
    7. Li, Jun & Hamdi-Cherif, Meriem & Cassen, Christophe, 2017. "Aligning domestic policies with international coordination in a post-Paris global climate regime: A case for China," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 258-274.
    8. Céline Guivarch & Sandrine Mathy, 2012. "Energy-GDP decoupling in a second best world—a case study on India," Climatic Change, Springer, vol. 113(2), pages 339-356, July.
    9. Philippe Quirion, 2022. "Output-based allocation and output-based rebates: a survey," Chapters, in: Handbook on Trade Policy and Climate Change, chapter 7, pages 94-107, Edward Elgar Publishing.
    10. Fabien Roques & Olivier Sassi & Céline Guivarch & Henri Waisman & Renaud Crassous & Jean Charles Hourcade, 2009. "Integrated Modelling of Economic-Energy-Environment Scenarios - The Impact of China and India's Economic Growth on Energy Use and CO2 Emissions," CIRED Working Papers hal-00866448, HAL.
    11. Guivarch, Celine & Monjon, Stéphanie, 2016. "Energy security in a low-carbon world: Identifying the main uncertain drivers of energy security in Europe," Conference papers 332807, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Zhang, Cheng & Wang, Qunwei & Shi, Dan & Li, Pengfei & Cai, Wanhuan, 2016. "Scenario-based potential effects of carbon trading in China: An integrated approach," Applied Energy, Elsevier, vol. 182(C), pages 177-190.
    13. Guy Meunier & Jean-Pierre Ponssard, 2012. "A Sectoral Approach Balancing Global Efficiency and Equity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(4), pages 533-552, December.
    14. Liu, Beibei & He, Pan & Zhang, Bing & Bi, Jun, 2012. "Impacts of alternative allowance allocation methods under a cap-and-trade program in power sector," Energy Policy, Elsevier, vol. 47(C), pages 405-415.
    15. Richard Newell & William Pizer & Jiangfeng Zhang, 2005. "Managing Permit Markets to Stabilize Prices," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(2), pages 133-157, June.
    16. Stavins, Robert, 2004. "Environmental Economics," Working Paper Series rwp04-051, Harvard University, John F. Kennedy School of Government.
    17. Wood, Peter John & Jotzo, Frank, 2011. "Price floors for emissions trading," Energy Policy, Elsevier, vol. 39(3), pages 1746-1753, March.
    18. Fischer, Carolyn, 2011. "Market power and output-based refunding of environmental policy revenues," Resource and Energy Economics, Elsevier, vol. 33(1), pages 212-230, January.
    19. Elmar Kriegler & Brian-C O'Neill & Stéphane Hallegatte & Tom Kram & Richard-H Moss & Robert Lempert & Thomas J Wilbanks, 2010. "Socio-economic Scenario Development for Climate Change Analysis," CIRED Working Papers hal-00866437, HAL.
    20. Waisman, Henri & Rozenberg, Julie & Hourcade, Jean Charles, 2013. "Monetary compensations in climate policy through the lens of a general equilibrium assessment: The case of oil-exporting countries," Energy Policy, Elsevier, vol. 63(C), pages 951-961.

    More about this item

    Keywords

    cap-and-trade; carbon emissions trading; climate policy frameworks; climate regime; developing countries; sectoral approach; sectoral target; approches sectorielles; cible sectorielle; quotas d'émissions échangeables; pays en développement; régime climatique; structures de politique climatique;
    All these keywords.

    JEL classification:

    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00692486. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.