Dynamic bargaining and CDM low hanging fruits with endogenous total emission abatement target

Jiro Akita, Haruo Imai, Hidenori Niizawa

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

A three-stage dynamic model of climate change negotiation featuring developed and developing country is constructed in order to capture Copenhagen COP of UNFCCC and subsequent developments. In stage 1 (Copenhagen), countries negotiate a long-run (total) emission abatement target T(= q+ Q+ Q'), leaving specific terms of agreement undecided. In stage 2 (CDM), they negotiate emission reduction obligation q that only the developed country bears. In stage 3 (post-CDM), both countries bear abatement obligation and negotiate their respective abatement obligations Q',Q. As they engage in stage 1 and 2 negotiations, they cannon commit themselves for period 2 abatement, which leads to the well-known problem of incomplete contract. We associate this situation with so-called CDM Low Hanging Fruits problem. We examine the gain and loss on the part of the developing country to see if their low-hanging fruits are indeed shortchanged.

Original languageEnglish
Title of host publicationProceedings - 20th International Congress on Modelling and Simulation, MODSIM 2013
EditorsJulia Piantadosi, Robert Anderssen, John Boland
PublisherModelling and Simulation Society of Australia and New Zealand Inc. (MSSANZ)
Pages1242-1248
Number of pages7
ISBN (Electronic)9780987214331
Publication statusPublished - 2013
Event20th International Congress on Modelling and Simulation - Adapting to Change: The Multiple Roles of Modelling, MODSIM 2013 - Held jointly with the 22nd National Conference of the Australian Society for Operations Research, ASOR 2013 and the DSTO led Defence Operations Research Symposium, DORS 2013 - Adelaide, Australia
Duration: 2013 Dec 12013 Dec 6

Publication series

NameProceedings - 20th International Congress on Modelling and Simulation, MODSIM 2013

Conference

Conference20th International Congress on Modelling and Simulation - Adapting to Change: The Multiple Roles of Modelling, MODSIM 2013 - Held jointly with the 22nd National Conference of the Australian Society for Operations Research, ASOR 2013 and the DSTO led Defence Operations Research Symposium, DORS 2013
Country/TerritoryAustralia
CityAdelaide
Period13/12/113/12/6

Keywords

  • Climate Change
  • Kyoto Mechanisms

ASJC Scopus subject areas

  • Information Systems and Management
  • Modelling and Simulation

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