Regensburg 2004 – scientific programme

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AKSOE: Physik sozio-ökonomischer Systeme

AKSOE 5: Soziale Systeme und Entscheidungsmodelle II

AKSOE 5.1: Talk

Tuesday, March 9, 2004, 14:00–14:30, H8

Emissions Trading Between Multiple Regions and Firms — •Jürgen Scheffran — Potsdam Institute for Climate Impact Research, Telegrafenberg A31, 14412 Potsdam

Emissions trading is an instrument to achieve emission reductions in regions and business sectors where they are least costly. Emission paths and emission trading flows are analysed in a multi-agent framework of multi-level decisionmaking in climate policy and market interaction among firms. The price mechanism depends on individual threshold prices, the level of required emission reduction and the capacity of economies to shift to a low-carbon mode of production. The model discusses the role of climate guardrails, equity principles on the allocation of emission rights, conditions for switching to low-emission goods and technologies, and benefits of cooperation between developing and industrialized regions.