Tightening the System: Central Allocation of Emission Rights

A whole bundle of so-called "flexible mechanisms" has been foreseen by the Kyoto Protocol in order to help industrial countries to fulfill their agreed reduction targets in the most cost-effective way. Emission permits will act as the backbone of all market-orientated mechanisms. Therefore, their initial allocation to the market participants is crucial. The deposit-refund model of Central Allocation is an alternative to the distribution of emission permits actually discussed in the context of flexible mechanisms. A Climate Bank is proposed that issues permits equal to the aggregate budget of all Annex-B countries. The system of Central Allocation is aimed to achieve an equitable distribution according to real emission needs, a positive sanction for compliance and overall system integrity.


Issue Date:
1998
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/26375
Total Pages:
15
Series Statement:
HWWA Discussion Paper 70




 Record created 2017-04-01, last modified 2017-08-24

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