Evaluation of Incentives in International Sectoral Crediting Mechanisms: A Report for Enel

91 Pages Posted: 19 Dec 2011 Last revised: 20 Dec 2011

See all articles by David Harrison

David Harrison

NERA Economic Consulting

Francesco Lo Passo

NERA Economic Consulting

Daniel Radov

NERA Economic Consulting

Albert L. Nichols

NERA Economic Consulting

Per Klevnas

NERA Economic Consulting

Andrew Foss

NERA Economic Consulting

Date Written: October 1, 2011

Abstract

This report considers the incentives of key actors to develop or participate in a sectoral crediting mechanism (SCM) for greenhouse gas emission reductions. Sectoral approaches have become prominent in international discussions of new market mechanisms to reduce greenhouse gas emissions in developing countries and set the stage for broader international agreements. The SCM is a particular form of sectoral approach in which a developing country and a developed country agree upon a crediting baseline level of emissions intensity for a sector that is below the business-as-usual (BAU) level (see Figure ES-1). The developing country would receive valuable credits for reductions below this crediting baseline — based upon its actual emissions intensity and output level — but would incur no liability if the emissions intensity of the sector remained above the crediting baseline level.

Suggested Citation

Harrison, David and Lo Passo, Francesco and Radov, Daniel and Nichols, Albert (Nick) L. and Klevnas, Per and Foss, Andrew, Evaluation of Incentives in International Sectoral Crediting Mechanisms: A Report for Enel (October 1, 2011). Available at SSRN: https://ssrn.com/abstract=1974672 or http://dx.doi.org/10.2139/ssrn.1974672

David Harrison (Contact Author)

NERA Economic Consulting ( email )

United States
617-621-2612 (Phone)
617-621-0336 (Fax)

Francesco Lo Passo

NERA Economic Consulting ( email )

50 Main Street, 14th Floor
White Plains, NY 10606
United States

Daniel Radov

NERA Economic Consulting ( email )

50 Main Street, 14th Floor
White Plains, NY 10606
United States

Albert (Nick) L. Nichols

NERA Economic Consulting ( email )

United States
617-621-2614 (Phone)

HOME PAGE: http://WWW.NERA.com

Per Klevnas

NERA Economic Consulting ( email )

50 Main Street, 14th Floor
White Plains, NY 10606
United States

Andrew Foss

NERA Economic Consulting ( email )

50 Main Street, 14th Floor
White Plains, NY 10606
United States

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