Analysis on complementarity between a CO2 tax and an emissions trading system to reduce industrial emissions in Chile

2020 ◽  
pp. 0958305X2095419
Author(s):  
Cristian Mardones
Keyword(s):  
Emissions Trading ◽  
Industrial Emissions ◽  
Trading System ◽  
Firm Level ◽  
Total Cost ◽  
Co2 Tax ◽  
Level Data ◽  
Industrial Sources ◽  
Reduce Emissions ◽  
Emissions Trading System

This study aims to analyze the behavior of Chilean industrial sources when a CO2 tax, an emissions trading system with a total reduction target of 30%, or both instruments simultaneously are applied. For the above, an optimization model is built that is then calibrated with firm -level data obtained from the Annual National Industrial Survey (ENIA). Specifically, the model assumes that industrial sources have the option of maintaining their original emissions, replacing their current fuels with less polluting ones to pay fewer taxes and/or trade of emissions in a carbon market. The results show that to reduce emissions by at least 30% a tax close to US $17.5/tCO2 could be applied with a total cost of US $106 million, but it would be better to apply an emissions trading system with a similar price because the total cost would be US $21.3 million. If both economic instruments are applied together, the total cost of reduction is higher than when the instruments are implemented independently. Thus, it is concluded that Chile could move from a CO2 tax to an emissions trading system in order to reduce the costs of its environmental regulation.

scholarly journals Capacity Development Associated with the Implementation of Emissions Trading System in Mexico

2021 ◽  
pp. 223-239
Author(s):  
María Concepción Martínez Rodríguez ◽  
Catherine Nieto Moreno ◽  
Mariana Marcelino Aranda
Keyword(s):  
Strategic Alliances ◽  
Emissions Trading ◽  
National Level ◽  
Capacity Development ◽  
Trading System ◽  
Learning Framework ◽  
Reduce Emissions ◽  
The Government ◽  
Environmental Integrity ◽  
Emissions Trading System

AbstractThe creation of an emissions trading system in Mexico as response to international policy on climate change forces the government and corporations to create new activities and responsibilities to address this issue. It is also important to know who will be the decision-maker and who is in charge of the institutional work (representation and negotiation). The main objective of this chapter is to point out who the stakeholders involved in the design, implementation, evaluation and transparency of the system are, or should be, according to the national regulatory framework and international summons. We shall also analyze the mechanics and information provided by the system and how it helps to make environmental policy, which helps to reduce emissions. Finally, we will also analyze whether it also helps to establish strategic alliances and international agreements toward common objectives and priorities. The chapter approaches the topic based on capacity development theory, which focuses on improving governance among different levels and stakeholders: government, companies, civil organizations, and scientists. We emphasize the potential of training spaces as a place for transformation and developing a learning framework whose own relevance relies on the focus of emergent strategies, which ensure the environmental integrity and conditions for the country’s competence in the international context. This chapter contributes to existing literature about the understanding of executing such a system, the stakeholders involved at the national level, and their potential to create international networks.

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