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Emissions trading, capital flows and the Kyoto Protocol

McKibbin, Warwick J; Ross, Martin T; Shackleton, Robert; Wilcoxen, Peter J


We use an econometrically estimated multi-region, multi-sector general equilibrium model of the world economy to examine the effects of the tradable emissions permit system proposed in the 1997 Kyoto protocol, under various assumptions about that extent of international permit trading. We focus, in particular, on the effects of the system on international trade and capital flows. Our results suggest that consideration of these flows significantly affects estimates of the domestic effects of the...[Show more]

CollectionsANU Research Publications
Date published: 1999
Type: Working/Technical Paper


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