Will Markets Direct Investments under the Kyoto Protocol? Lessons from the Activities Implemented Jointly Pilots

Under the Kyoto Protocol, countries can meet treaty obligations by investing in projects that reduce or sequester greenhouse gases elsewhere. Prior to ratification, treaty participants agreed to launch country-based pilot projects, referred to collectively as Activities Implemented Jointly (AIJ), to...

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Main Authors:	Larson, Donald F., Breustedt, Gunnar
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Climate Natural Disasters Global Warming Q540 Environmental Economics: Government Policy Q580
Online Access:	http://hdl.handle.net/10986/4665

id	okr-10986-4665
recordtype	oai_dc
spelling	okr-10986-46652021-04-23T14:02:19Z Will Markets Direct Investments under the Kyoto Protocol? Lessons from the Activities Implemented Jointly Pilots Larson, Donald F. Breustedt, Gunnar Climate Natural Disasters Global Warming Q540 Environmental Economics: Government Policy Q580 Under the Kyoto Protocol, countries can meet treaty obligations by investing in projects that reduce or sequester greenhouse gases elsewhere. Prior to ratification, treaty participants agreed to launch country-based pilot projects, referred to collectively as Activities Implemented Jointly (AIJ), to test novel aspects of the project-related provisions. Relying on a ten-year history of projects, we investigate the determinants of AIJ investment. Our findings suggest that review-agency preferences related to national political objectives and possibly deeper cultural ties influenced project selection and limited the number of AIJ projects. Bilateral ties also appear to have affected investment decisions directly, possibly because of related transaction costs. The results suggest an investment process different from the assumptions that underlie well-known estimates of cost-savings related to the Protocol's flexibility mechanisms. We conclude that if approaches developed under the AIJ programs to approve projects are retained, the scale of investment under Kyoto's flexibility provisions and their cost-savings will be less than what is generally anticipated and the pattern of investment less driven by abatement costs. 2012-03-30T07:29:07Z 2012-03-30T07:29:07Z 2009 Journal Article Environmental and Resource Economics 09246460 http://hdl.handle.net/10986/4665 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Climate Natural Disasters Global Warming Q540 Environmental Economics: Government Policy Q580
spellingShingle	Climate Natural Disasters Global Warming Q540 Environmental Economics: Government Policy Q580 Larson, Donald F. Breustedt, Gunnar Will Markets Direct Investments under the Kyoto Protocol? Lessons from the Activities Implemented Jointly Pilots
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Under the Kyoto Protocol, countries can meet treaty obligations by investing in projects that reduce or sequester greenhouse gases elsewhere. Prior to ratification, treaty participants agreed to launch country-based pilot projects, referred to collectively as Activities Implemented Jointly (AIJ), to test novel aspects of the project-related provisions. Relying on a ten-year history of projects, we investigate the determinants of AIJ investment. Our findings suggest that review-agency preferences related to national political objectives and possibly deeper cultural ties influenced project selection and limited the number of AIJ projects. Bilateral ties also appear to have affected investment decisions directly, possibly because of related transaction costs. The results suggest an investment process different from the assumptions that underlie well-known estimates of cost-savings related to the Protocol's flexibility mechanisms. We conclude that if approaches developed under the AIJ programs to approve projects are retained, the scale of investment under Kyoto's flexibility provisions and their cost-savings will be less than what is generally anticipated and the pattern of investment less driven by abatement costs.
format	Journal Article
author	Larson, Donald F. Breustedt, Gunnar
author_facet	Larson, Donald F. Breustedt, Gunnar
author_sort	Larson, Donald F.
title	Will Markets Direct Investments under the Kyoto Protocol? Lessons from the Activities Implemented Jointly Pilots
title_short	Will Markets Direct Investments under the Kyoto Protocol? Lessons from the Activities Implemented Jointly Pilots
title_full	Will Markets Direct Investments under the Kyoto Protocol? Lessons from the Activities Implemented Jointly Pilots
title_fullStr	Will Markets Direct Investments under the Kyoto Protocol? Lessons from the Activities Implemented Jointly Pilots
title_full_unstemmed	Will Markets Direct Investments under the Kyoto Protocol? Lessons from the Activities Implemented Jointly Pilots
title_sort	will markets direct investments under the kyoto protocol? lessons from the activities implemented jointly pilots
publishDate	2012
url	http://hdl.handle.net/10986/4665
_version_	1764392314350862336

Will Markets Direct Investments under the Kyoto Protocol? Lessons from the Activities Implemented Jointly Pilots

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