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Facilitating Linkage of Heterogeneous Regional, National, and Sub-national Climate Policies through a Future International Agreement

Author

Listed:
  • Bodansky, Daniel M.

    (AZ State University)

  • Hoedl, Seth

    (Harvard University)

  • Metcalf, Gilbert

    (Tufts University)

  • Stavins, Robert

    (Harvard University)

Abstract
Negotiations pursuant to the Durban Platform for Enhanced Action appear likely to lead to a 2015 Paris agreement that embodies a hybrid climate policy architecture, combining top-down elements, such as for monitoring, reporting, and verification, with bottom-up elements, including "nationally determined contributions" from each participating country, detailing what it intends to do to reduce emissions, based on its national circumstances. For such a system to be cost-effective--and thus more likely to achieve significant global emissions reductions--a key feature will be linkages among regional, national, and sub-national climate policies. By linkage, we mean a formal recognition by a greenhouse gas mitigation program in one jurisdiction (a regional, national, or sub-national government) of emission reductions undertaken in another jurisdiction for purposes of complying with the first jurisdiction's mitigation program. We examine how a future international policy architecture could help facilitate the growth and operation of a robust system of international linkages of regional, national, and sub-national policies. Several design elements merit serious consideration for inclusion in the Paris agreement, either directly or by establishing a process for subsequent international elaboration. At the same time, including detailed linkage rules in the core agreement is not desirable because this could make it difficult for rules to evolve in light of experience.

Suggested Citation

  • Bodansky, Daniel M. & Hoedl, Seth & Metcalf, Gilbert & Stavins, Robert, 2015. "Facilitating Linkage of Heterogeneous Regional, National, and Sub-national Climate Policies through a Future International Agreement," Working Paper Series rwp15-003, Harvard University, John F. Kennedy School of Government.
    • Handle: RePEc:ecl:harjfk:rwp15-003
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    References listed on IDEAS

    as
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    Cited by:

    1. 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).
    2. N. Keohane & A. Petsonk & A. Hanafi, 2017. "Toward a club of carbon markets," Climatic Change, Springer, vol. 144(1), pages 81-95, September.
    3. Koch, Nicolas & Reuter, Wolf Heinrich & Fuss, Sabine & Grosjean, Godefroy, 2017. "Permits vs. offsets under investment uncertainty," Resource and Energy Economics, Elsevier, vol. 49(C), pages 33-47.
    4. Aldy, Joseph Edgar, 2015. "Evaluating Mitigation Effort: Tools and Institutions for Assessing Nationally Determined Contributions," Scholarly Articles 23936083, Harvard Kennedy School of Government.
    5. Diniz Oliveira, Thais & Gurgel, Angelo & Tonry, Steve, 2018. "The Effects for Brazil of Linking Emissions Trading Schemes in the context of the Heterogeneity of Trading Partners," Conference papers 332951, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Baran Doda & Luca Taschini, 2017. "Carbon Dating: When Is It Beneficial to Link ETSs?," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(3), pages 701-730.
    7. Kamleshan Pillay & Jorge E. Viñuales, 2016. "“Monetary” rules for a linked system of offset credits," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 16(6), pages 933-951, December.

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    More about this item

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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