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• W1482213735 abstract "In Asia, many municipalities are actively tackling an issue of global warming by setting their respective voluntary targets of carbon dioxide (CO2) emissions abatement. Some of them in China, India, and Japan have already introduced or plan to introduce municipal emissions trading schemes. These movements would lead to a good preparation towards a new international framework under the United Nations Framework Convention on Climate Change (UNFCCC) starting in 2020 after the termination of the Kyoto Protocol because Asia’s developing countries such as China and India are likely to have legally-binding obligations of CO2 emissions abatement under the new international framework. Furthermore, these movements indicate the possibility that currently emerging municipal emissions trading schemes in Asia will be linked to seek potential benefits from such linking. Discussing that municipal emissions trading schemes must be more feasible than national emissions trading schemes, this paper tests the potential benefits of linking municipal emissions trading schemes across Asia. More specifically, the paper empirically investigates merits of linking municipal emissions trading schemes across a region, where CO2 abatement technologies are diverse, in attaining an overall CO2 abatement target for a region as well as CO2 abatement targets for respective municipalities and in reducing an overall CO2 abatement costs for a region as well as CO2 abatement costs for respective municipalities. To investigate these merits, the paper first reviews theoretical frameworks and implications of a general economic model of emissions trading and secondly conducts a simulation analysis on an extended model of emission trading assuming that private firms in municipalities trade carbon permits each other across a region. Simulations are conducted for a hypothetical region, where CO2 abatement technologies are diverse like in Asia, to compare following three points for three cases: (1) a case of no linking municipal emissions trading schemes; (2) a case of linking municipal emissions trading schemes at home; and (3) a case of linking municipal emissions trading schemes across a region. The first point to be compared for these three cases is an overall CO2 abatement costs for the region to attain its overall CO2 abatement target. The second point is costs for each of municipalities to attain its CO2 abatement target. The third point is cost savings/revenues for each of municipalities gained from trading carbon permits. A major result of simulations using hypothetical marginal abatement cost functions for private firms is that, the case (3), that is, linking municipal emissions trading schemes across the region has the least overall CO2 emissions abatement costs for the region." @default.
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• W1482213735 date "2012-12-23" @default.
• W1482213735 modified "2023-09-27" @default.
• W1482213735 title "Linking Municipal Emissions Trading Schemes Across Asia: The Merits in Attaining Carbon Dioxide Abatement Targets and Reducing Its Costs" @default.
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