TY - GEN
T1 - Dynamic bargaining and CDM low hanging fruits with endogenous total emission abatement target
AU - Akita, Jiro
AU - Imai, Haruo
AU - Niizawa, Hidenori
N1 - Funding Information:
This work was supported by JSPS KAKENHI Grant Number 23310032
PY - 2013
Y1 - 2013
N2 - 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.
AB - 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.
KW - Climate Change
KW - Kyoto Mechanisms
UR - http://www.scopus.com/inward/record.url?scp=85080862388&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85080862388&partnerID=8YFLogxK
M3 - Conference contribution
AN - SCOPUS:85080862388
T3 - Proceedings - 20th International Congress on Modelling and Simulation, MODSIM 2013
SP - 1242
EP - 1248
BT - Proceedings - 20th International Congress on Modelling and Simulation, MODSIM 2013
A2 - Piantadosi, Julia
A2 - Anderssen, Robert
A2 - Boland, John
PB - Modelling and Simulation Society of Australia and New Zealand Inc. (MSSANZ)
T2 - 20th 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
Y2 - 1 December 2013 through 6 December 2013
ER -
