Title: Environmental transfers against global warming: a credit-based program

Authors: Norimichi Matsueda, Koichi Futagami, Akihisa Shibata

Addresses: School of Economics, Kwansei Gakuin University, Nishinomiya, Hyogo 662-8501, Japan. ' Department of Economics, Osaka University, Machikaneyama, Toyonaka, Osaka 560-0043, Japan. ' KIER, Kyoto University, Yoshida, Sakyo-ku, Kyoto 606-8501, Japan

Abstract: This paper investigates the impacts of institutionalising a credit-based transfer program between developing and developed countries. Such a program is expected to become an essence of the Clean Development Mechanism in the Kyoto protocol. The provisions of financial and technological transfers are incorporated simultaneously into a dynamic game model of global stock pollution, where the efficiency in emission abatement is also described as a stock variable. Our numerical simulation indicates that a credit-based transfer program can be more beneficial for a recipient country as well as for a donor country, than a non-credit-based transfer program.

Keywords: global warming; international environmental transfers; clean development mechanism; differential game; open-loop Stackelberg equilibrium; credit-based transfer; Kyoto protocol; dynamic game modelling; global stock pollution; emission abatement; simulation; greenhouse gases.

DOI: 10.1504/IJGENVI.2006.009400

International Journal of Global Environmental Issues, 2006 Vol.6 No.1, pp.47 - 72

Published online: 28 Mar 2006 *

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