Argument in the Greenhouse: The International Economics of by Sujata Gupta, Stephen Hall, Nick Mabey, Clare Smith

By Sujata Gupta, Stephen Hall, Nick Mabey, Clare Smith

Overlaying either the constructing and built international, this publication identifies very important new rules to foster powerful agreements in emissions and stop international warming: lifelike regulations which should still obtain foreign and household help.

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What would have happened without the project) are counter-factual and so cannot be measured. This is especially important for sink enhancements such as reforestation and land set-aside, as the different potential uses of the land (crops, ranching or fallow) greatly affect the net carbon emissions from the project. This problem is enhanced by the incentives in JI which encourage both the ‘buyer’ and the ‘seller’ to exaggerate the amount of CO2 saved to the international monitoring authority. International co-ordination of climate change prevention 23 The monitoring and verification problems are exacerbated in the more general case of JI between nations (Bohm 1994), when some countries have committed to emissions limits and others have not.

1 1690 1686 93 2100 2100 Source: IPCC 1992 a TPER=Total primary energy requirement, b Carbon intensity is defined as units of carbon per unit of TPER. c CFCs include CFC-11, CFC-12, CFC-113, CFC-114 and CFC-115. 0 3 204 2 INTERNATIONAL CO-ORDINATION OF CLIMATE CHANGE PREVENTION INTRODUCTION The problems associated with controlling emissions of greenhouse gases, principally carbon dioxide, are economic and political not technical. Technologies exist commercially, or are in an advanced development stage, which could greatly reduce the world’s reliance on fossil fuels, but the questions remain: how much will this cost?

Conditions for macroeconomic efficiency Given an understanding of the value of recycled revenue, it is likely that governments would take such costs into account when deciding how much CO2 to control nationally, and how many permits to buy or sell on the international market. The inclusion of recycling benefits into the total cost calculations means that the initial distribution of permits may affect the total cost of reaching the emissions target, and thus the overall efficiency of the permit mechanism.

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