In the Kyoto Protocol to the UN Framework Convention on Climate
Change, industrialized countries agreed on binding absolute targets
for greenhouse gas emissions and on the admission of flexible
market-economy instruments - such as emissions trading, joint
implementation and the clean development mechanism - used for
reaching the targets. The contributions in this volume reveal that
flexible instruments can lower the costs of climate protection
considerably - not only in theory, but also in practice. Concerning
implementation, it will be necessary to take care of possible
loopholes, uncertainties and transaction costs which may be too
high if no proper design is chosen.
General
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