Carbon Offsets with Endogenous Environmental Policy

Interests in obtaining carbon offsets in host countries for CDM projects may serve as an obstacle to implementing more stringent general environmental policies in the same countries. A relatively lax environmental policy, whereby carbon emissions remain high, can be advantageous for such countries a...

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Main Author: Strand, Jon
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/4966
id okr-10986-4966
recordtype oai_dc
spelling okr-10986-49662021-04-23T14:02:20Z Carbon Offsets with Endogenous Environmental Policy Strand, Jon Energy: Government Policy Q480 Air Pollution Water Pollution Noise Hazardous Waste Solid Waste Recycling Q530 Climate Natural Disasters Global Warming Q540 Environmental Economics: Government Policy Q580 Interests in obtaining carbon offsets in host countries for CDM projects may serve as an obstacle to implementing more stringent general environmental policies in the same countries. A relatively lax environmental policy, whereby carbon emissions remain high, can be advantageous for such countries as it leaves them with a higher than otherwise scope for future emissions reductions through CDM and other offset projects. In this paper, the potential to affect the availability of future CDM projects is shown to distort environmental and energy policies of CDM host countries, in two ways. First, policies to reduce the use of fossil energy are weakened. This in turn weakens private sector incentives to switch to lower-carbon technology through CDM projects. CDM host governments then also find it attractive to subsidize this switch, in order to maximize the country's advantage from the CDM. 2012-03-30T07:30:36Z 2012-03-30T07:30:36Z 2011 Journal Article Energy Economics 01409883 http://hdl.handle.net/10986/4966 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Energy: Government Policy Q480
Air Pollution
Water Pollution
Noise
Hazardous Waste
Solid Waste
Recycling Q530
Climate
Natural Disasters
Global Warming Q540
Environmental Economics: Government Policy Q580
spellingShingle Energy: Government Policy Q480
Air Pollution
Water Pollution
Noise
Hazardous Waste
Solid Waste
Recycling Q530
Climate
Natural Disasters
Global Warming Q540
Environmental Economics: Government Policy Q580
Strand, Jon
Carbon Offsets with Endogenous Environmental Policy
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description Interests in obtaining carbon offsets in host countries for CDM projects may serve as an obstacle to implementing more stringent general environmental policies in the same countries. A relatively lax environmental policy, whereby carbon emissions remain high, can be advantageous for such countries as it leaves them with a higher than otherwise scope for future emissions reductions through CDM and other offset projects. In this paper, the potential to affect the availability of future CDM projects is shown to distort environmental and energy policies of CDM host countries, in two ways. First, policies to reduce the use of fossil energy are weakened. This in turn weakens private sector incentives to switch to lower-carbon technology through CDM projects. CDM host governments then also find it attractive to subsidize this switch, in order to maximize the country's advantage from the CDM.
format Journal Article
author Strand, Jon
author_facet Strand, Jon
author_sort Strand, Jon
title Carbon Offsets with Endogenous Environmental Policy
title_short Carbon Offsets with Endogenous Environmental Policy
title_full Carbon Offsets with Endogenous Environmental Policy
title_fullStr Carbon Offsets with Endogenous Environmental Policy
title_full_unstemmed Carbon Offsets with Endogenous Environmental Policy
title_sort carbon offsets with endogenous environmental policy
publishDate 2012
url http://hdl.handle.net/10986/4966
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