Yeşil_İz Conferences-16: Prof. Dr. Christoph Böhringer
The guests of Yeşil_İz Conferences will be Prof. Dr. Christoph Böhringer (Department of Economics, University of Oldenburg, Germany) on Wednesday, March 13 between 14:00-16:00. The conference titled “How to Boost Countries’ Climate Ambitions:Turning Gains from Emissions Trading into Gains for Climate” will be followed in B-312.
Abstract: The Nationally Determined Contributions (NDCs) under the Paris Agreement fall short of the abatement needed to reach the 2°C target. Emissions trading could be a “costless” means to reduce the ambition gap if countries used their gains from trade for additional abatement. However, this requires cooperative behavior. We show that with emissions trading, countries’ non-cooperative choices of emissions reduction contributions can lead to even more abatement, provided that these contributions may not be lower than initial NDCs. Intuitively, countries with high climate damages raise their contributions if they can meet them partly through abatement in countries with low abatement costs.