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6. Policies, Measures, and Instruments
Contents
Executive Summary
6.1 Introduction
6.1.1 Introduction and Key Questions
6.1.2 Types of Policies, Measures, and Instruments
6.1.3 Policy Developments since the Second Assessment Report
6.1.4 Criteria for Policy Choice
6.1.5 The Political Economy of National Instrument Choice
6.1.5.1 Key Lessons from the Political Economy
Literature
6.1.5.2 Implications for Global Climate Change Policy
6.2 National Policies, Measures, and Instruments
6.2.1 Non-Climate Policies with Impacts on Greenhouse
Gas Emissions
6.2.1.1 Structural Reform Policies
6.2.1.2 Price and Subsidy Policies
6.2.1.3 Liberalization and Restructuring of Energy Markets
6.2.2 Climate and Other Environmental Policies
6.2.2.1 Regulatory Standards
6.2.2.2 Emissions Taxes and Charges
6.2.2.3 Tradable Permits
6.2.2.4 Voluntary Agreements
6.2.2.5 Informational Instruments
6.2.2.6 Subsidies and other Incentives
6.2.3 Mixes of National Policy Instruments
6.3 International Policies, Measures, and Instruments
6.3.1 International Emissions Trading
6.3.2 Project-based Mechanisms (Joint Implementation and
the Clean Development Mechanism)
6.3.2.1 Joint Implementation (Article 6)
6.3.2.2 The Clean Development Mechanism (Article 12)
6.3.2.3 Baselines
6.3.2.4 Experience with Activities Implemented Jointly
6.3.3 Direct International Transfers
6.3.3.1 Financial Resources
6.3.3.2 Technology Transfer
6.3.4 Other Policies and Instruments
6.3.4.1 Regulatory Instruments
6.3.4.2 International and Harmonized (Domestic) Carbon
Taxes
6.3.4.3 Standardization of Measurement Procedures
6.3.4.4 International Voluntary Agreements with Industry
6.3.5 International Climate Change Agreements: Participation,
Compliance, and Liability
6.3.5.1 Participation
6.3.5.2 Compliance
6.3.5.3 Liability
6.4 Interrelations Between International and National
Policies, Measures, and Instruments
6.4.1 Relationship Between Domestic Policies and Kyoto
Mechanisms
6.4.2 Conflicts with International Environmental Regulation
and Trade Law
6.4.3 International Co-ordination of Policy Packages
6.4.4 Equity, Participation, and International Policy Instruments
6.5 Key Considerations
6.5.1 Price versus Quantity Instruments
6.5.2 Interactions of Policy Instruments with Fiscal
Systems
6.5.3 The Effects of Alternative Policy Instruments on Technological
Change
6.5.3.1 Theoretical Analyses
6.5.3.2 Empirical Analyses
6.6 Climate Policy Evaluation
References
Co-ordinating Lead Authors:
Igor Bashmakov (Russian Federation), Catrinus Jepma (Netherlands)
Lead Authors:
Peter Bohm (Sweden), Sujata Gupta (India), Erik Haites (Canada), Thomas Heller
(USA), Juan-Pablo Montero (Chile), Alberto Pasco-Font (Peru), Robert Stavins
(USA), John Turkson† (Ghana), Huaqing Xu (China), Mitsutsune Yamaguchi
(Japan)
Contributing Authors:
Scott Barrett (UK), Andrew Dearing (UK), Bouwe Dijkstra (Netherlands), Ed Holt
(USA), Nathaniel Keohane (USA), Shinya Murase (Japan), Toshio Nakada (Japan),
William Pizer (USA), Farhana Yamin (Pakistan)
Review Editors:
Dilip Ahuja (India), Peter Wilcoxen (USA)
† John Turkson passed away in January 2000. He contributed actively to
the drafting process.
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