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Title Roles of Flexible Mechanisms in International Environmental Agreements
Author Jeongmeen Suh (Soongsil University) and Myeonghwan Cho (University of Seoul)
Volume 33 Number 2
Pages 239-265 
Keywords International Environmental Agreement, Flexible Mechanism, Emissions Trading System, Joint Implementation, Kyoto Protocol
Abstract This paper focuses on the roles of flexible mechanisms in international environmental
agreements (IEAs) and investigates the possibility of IEAs to achieve globally optimal
transboundary pollution reduction. We first demonstrate that emission trading does not
ensure the globally optimal outcome. Then, by introducing the investing schemes (Joint
Implementation and Clean Development Mechanism) together with Emissions Trading, we
also show that the global optimum can be achieved under a properly designed cost-sharing
rule. Moreover, there exists an initial permit allocation with which every country can be
better off through the flexible mechanisms. This finding implies that the countries can reach
an agreement that can help achieve the globally optimal outcome.
File KER-20171231-33-2-02.pdf
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