Title: Implementing the climate change convention: taxes or tradable abatement obligations equals coercion or negotiation

Authors: Peter Read

Addresses: Department of Applied and International Economics, Massey University, Palmerston, North, New Zealand

Abstract: Technological change external to the energy supply industry - sink enhancement and demand side efficiency improvements - is key to a least-cost greenhouse gas response strategy. The potential for a low cost global forestry and biofuel based response is noted. Enlisting energy supply firms| expertise to manage such technology change entails the use of policy instruments congenial to managerial involvement. Tradable abatement obligations (equivalent to uniform voluntary agreements and to a dedicated carbon tax) provide a greater incentive to external technological change than do conventional economic instruments (carbon taxes and tradable emissions permits). A process of negotiated transition from voluntary agreements to tradable abatement obligations is described and aspects of the long run policy regime discussed.

Keywords: greenhouse gas abatement; industry negotiations; economic instruments; technological change; biofuel and forestry; common action/joint implementation.

DOI: 10.1504/IJGEI.1998.000816

International Journal of Global Energy Issues, 1998 Vol.11 No.1/2/3/4, pp.58-66

Published online: 24 Jul 2003 *

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