The Costs Of Kyoto

This book considers the driving elements behind the benefits and costs of climate protection via Kyoto or similar international agreements that follow.

The Kyoto Protocol represents nearly a decade of international effort to reduce carbon emissions. While the treaty is the product of enormous international political effort, it has not been ratified by any major greenhouse emitter and it has been rejected by the United States. In this controversial new book, Warwick J. McKibbin and Peter Wilcoxen argue that the current approach of international negotiations on the Kyoto Protocol is going completely in the wrong direction. In Climate Change Policy after Kyoto, they attempt to steer the policy debate toward a realistic blueprint for effective policy. The authors believe that managing uncertainty—particularly the future costs of any plan—is key to realistic climate policy. They maintain that sustainable policy should meet four basic criteria: it should slow down carbon dioxide emissions where it is cost-effective to do so; compensate those who are hurt economically; require a high degree of consensus both domestically and internationally; and allow countries to enter the program easily and continue to participate even if they drop out of the agreement at certain times. The book summarizes the current state of knowledge about climate change and discusses the history of negotiations since 1992—in the process identifying the Kyoto Protocol as the wrong approach to the problem. It outlines important insights that economic theory offers for the design of climate policy, and uses those insights to develop a simple framework that will reduce greenhouse gas emissions while guaranteeing that short-run costs of compliance will not be excessive. The authors conclude by outlining a process by which international negotiations on climate control can proceed to an agreement that is both durable and feasible for all nations.

This volume investigates the potential performance of the Kyoto Protocol's international trading mechanisms in the presence of diverse types of domestic greenhouse policy instruments.

A Congressional hearing on the Kyoto Protocol, on the costs of stabilizing greenhouse gas emissions at 1990 levels by the year 2010, & its possible economic implications to the U.S. Witnesses include: Stuart E. Eizenstat, Under Secretary for Economic Business & Agricultural Affairs, U.S. Dept. of State; & Janet Yellen, Chair, Council of Economic Advisors. Additional material submitted for the record: Hon. Dan Schaefer, letter dated March 26, 1998, to Hon. Janet Yellen, requesting material for the record, & submission of same.

Climate Change: Analysis of Two Studies of Estimated Costs of Implementing the Kyoto Protocol

Bjorn Lomborg argues that many of the elaborate and staggeringly expensive actions now being considered to meet the challenges of global warming ultimately will have little impact on the world’s temperature. He suggests that rather than focusing on ineffective solutions that will cost us trillions of dollars over the coming decades, we should be looking for smarter, more cost-effective approaches (such as massively increasing our commitment to green energy R&D) that will allow us to deal not only with climate change but also with other pressing global concerns, such as malaria and HIV/AIDS. And he considers why and how this debate has fostered an atmosphere in which dissenters are immediately demonized.

The book does not attempt to say what should be done about global warming. Instead it uses a framework of thinking about how interests including those of governments and scientists as well as business and activists affect negotiations over international issues. The ultimate aim is to reconsider the international environmental institutions that attempt to balance these interests and forge workable agreements. The failure of Kyoto points to inadequacies in the current mechanisms. Boehmer-Christiansen and Kellow have made a valuable contribution to understanding this failure and where solutions might emerge. Ross McKitrick, The World Economy The Kyoto Protocol has singularly failed to shape international environmental policy-making in the way that the earlier Montreal protocol did. Whereas Montreal placed reliance on the force of science and moralistic injunctions to save the planet, and successfully determined the international response to climate change, Kyoto has proved significantly more problematic. International Environmental Policy considers why this is the case. The authors contend that such arguments on this occasion proved inadequate to the task, not just because the core issues of the Kyoto process were subject to more powerful and conflicting interests than previously, and the science too uncertain, but because the science and moral arguments themselves remained too weak. They argue that global warming is a failing policy construct because it has served to benefit limited but undeclared interests that were sustained by green beliefs rather than robust scientific knowledge. This highly topical book takes a frank look at the political motivations that underpin the global warming debate, and will appeal to political scientists and energy policy analysts as well as anyone with an interest in the future of the environment and in the policies we create to protect it.