Dynamic bargaining and CDM low hanging fruits with quadratic emissions abatement cost

Jiro Akita, Haruo Imai, Hidenori Niizawa

Research output: Contribution to conferencePaperpeer-review

2 Citations (Scopus)

Abstract

A two stage dynamic model of climate change negotiation featuring a developed and a developing country is constructed. Motivated by Copenhagen COP of UNFCCC, we postulate that countries have agreed on a long-run emission abatement target, but they are yet to negotiate the specific terms of agreement. In the first stage, they negotiate emission reduction obligation that only the developed country bears. In the second stage, both countries bear the abatement obligation. As they engage in the first stage negotiation, they cannon commit themselves for the second period 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
Pages897-904
Number of pages8
Publication statusPublished - 2012
Event12th International Multidisciplinary Scientific GeoConference and EXPO, SGEM 2012 - Varna, Bulgaria
Duration: 2012 Jun 172012 Jun 23

Other

Other12th International Multidisciplinary Scientific GeoConference and EXPO, SGEM 2012
Country/TerritoryBulgaria
CityVarna
Period12/6/1712/6/23

Keywords

  • Climate change
  • Global warming
  • Kyoto mechanism CDM
  • Kyoto protocol

ASJC Scopus subject areas

  • Earth-Surface Processes
  • Geology
  • Environmental Engineering
  • Management, Monitoring, Policy and Law

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