Dominique Gusbin, Ger Klaassen and Nikos Kouvaritakis (1999) "Costs of a ceiling on Kyoto flexibility", Int. J. Energy Policy 27 (1999) 833-844
This paper examines the potential costs of a ceiling on the use of flexibility mechanisms in the Kyoto Protocol using POLES, a partial equilibrium model of the world energy system. The results suggest that if emission trading were restricted to Annex I countries, halving the traded volume would increase costs by 11 billion $/year. If emission trading were to operate at a global level, reducing the trade to half the perfect market volume would increase annual costs by 12 billion $/year. Global carbon emissions might however be 1% lower. The sensitivity of the results is discussed.
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