Citation

Discussion Paper Details

Please find the details for DP7035 in an easy to copy and paste format below:

Full Details

Title: International Emission Permit Markets with Refunding

Author(s): Hans Gersbach and Ralph Winkler

Publication Date: November 2008

Keyword(s): climate change mitigation, global refunding scheme, international agreements, international permit markets and tradeable permits

Programme Area(s): Public Economics

Abstract: We propose a blueprint for an international emission permit market such as the EU trading scheme. Each country decides on the amount of permits it wants to offer. A fraction of these permits is grandfathered, the remainder is auctioned. Revenues from the auction are collected in a global fund and reimbursed to member countries in fixed proportions. We show that international permit markets with refunding lead to outcomes in which all countries tighten the issuance of permits and are better off compared to standard international permit markets. If the share of grandfathered permits is sufficiently small, we obtain approximately socially optimal emission reductions.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=7035

Bibliographic Reference

Gersbach, H and Winkler, R. 2008. 'International Emission Permit Markets with Refunding'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=7035