The Role of Flexibility Mechanisms in EU Climate Strategy: Lessons Learned and Future Challenges?

The main objective of this paper is to examine the evolution of European Union (EU) climate strategy, scrutinising in particular developments in EU's views on the so-called flexibility or Kyoto mechanisms. In brief, the paper argues that there has been a gradual change in EU's views, from the role of a sceptic in the run-up to Kyoto towards becoming more of a frontrunner on emissions trading in recent years. The need to 'save Kyoto' and the protracted development of EU climate policy are highlighted as two of the most important drivers behind this process of change. This paper also discusses some of the lessons learned from international negotiations and the development of EU climate policy. Finally, and drawing upon the lessons learned, the paper explores key future challenges for the further development of EU climate strategy.     

The Private Sector and the Implementation of the Kyoto Protocol: Experiences, Challenges and Prospects

This article emphasizes the critical importance of the private sector to the success of the efforts to mitigate climate change. Analysing the progress and experiences gained so far, this article concentrates on the role of the private sector in the operationalization of the Kyoto Protocol's three flexible mechanisms, namely Joint Implementation (JI), the Clean Development Mechanism (CDM) and international emissions trading. The article illustrates in detail the various tasks performed by private actors during the CDM and JI project cycles, and contemplates their possible participation under Article 17 of the Protocol on international emissions trading. While identifying some challenges, the article argues that the Kyoto Protocol's flexible mechanisms have succeeded in finding innovative ways of involving the private sector in climate change mitigation and that the post-2012 climate regime should build on these experiences.     

Emission Trading Restrictions with Endogenous Technological Change

In this paper we use a simple climate model for endogenous environmental technical change in order to analyse the effects on equity and efficiency of placing different degrees of restrictions on trade in the market of pollution permits. The model is obtained by incorporating in Nordhaus and Yang (1996)'s RICE model a notion of induced technical change close to the one proposed in Goulder and Mathai (2000). With the help of such a model, we assess the pros and cons of introducing ceilings on emission trading. In particular, we analyse both the cost effectiveness and the distributional effects of placing restrictions of trading emissions. The analysis takes into account the role of environmental technical change that could be enhanced by emission trade limitations. However, this effect is shown to be offset by the increased abatement cost induced by the larger than optimal adoption of domestic policy measures when ceilings are made binding. Hence, our analysis provides little support for quantitative restrictions of emission trading, even when these restrictions actually have a positive impact of technical change. Even in terms of equity, ceilings find no justification within our theoretical and modelling framework. Indeed, we find that flexibility mechanisms in the presence of endogenous technical change increase equity and that the highest equity levels are achieved without ceilings, both in the short and in the long run.     

Green economy and carbon markets for conservation and development: a critical view

Green economy aims to use economic rationality and market mechanisms to mute the most ecologically damaging effects of globalized capitalism while reviving economic growth in the global North, fostering development in the South, and decoupling economic growth from environmental decline. An archetypal application of green economy is transnational trade in ecosystem services, including reduced emissions for deforestation and degradation (REDD+). By compensating developing countries for maintaining forests as carbon sinks, this approach is meant to transcend politics and circumvent conflicts over the responsibilities of industrialized and ‘less-developed’ countries that have stymied global climate policy. However, carbon-offset trading is unlikely to result in lower greenhouse gas emissions, much less combined conservation and development gains. The troubled record of payment for environmental services and other schemes or commodification of nature illustrates that living ecosocial systems do not fit the requirements of market contracts. Disputes over proto-REDD+ projects point to the dangers that REDD+ will disadvantage or dispossess rural communities and distract attention from underlying causes of forest and livelihood loss. Two decades of all-but-futile climate negotiations have shown that global warming cannot be managed by means of technocratic expertise nor dealt with separately from the politics of inequality and the paradox of economic growth. The deceptive promise of greening with growth can blind us to these realities. Counter-hegemonic discourses to growth-centered green economy under the headings of buen vivir, mainly in the global South, and degrowth, mainly in the global North, therefore merit attention.     

THE NARROWING GENDER GAP IN ARRESTS: ASSESSING COMPETING EXPLANATIONS USING SELF‐REPORT,TRAFFIC FATALITY,AND OFFICIAL DATA ON DRUNK DRIVING, 1980–2004*

We evaluate two alternative explanations for the converging gender gap in arrest—changes in women's behavior versus changes in mechanisms of social control. Using the offense of drunk driving and three methodologically diverse data sets, we explore trends in the DUI gender gap. We probe for change across various age groups and across measures tapping DUI prevalence and chronicity. Augmented Dickey‐Fuller time‐series techniques are used to assess changes in the gender gap and levels of drunk driving from 1980 to 2004. Analyses show women of all ages making arrest gains on men—a converging gender gap. In contrast, self‐report and traffic data indicate little or no systematic change in the DUI gender gap. Findings support the conclusion that mechanisms of social control have shifted to target female offending patterns disproportionately. Little support exists for the contention that increased strain and liberalized gender roles have altered the gender gap or female drunk‐driving patterns.     

Do Insider Trading Laws Matter? Some Preliminary Comparative Evidence

Despite the long-standing insider trading debate, there is littleempirical research on insider trading laws, especially in acomparative context. The article attempts to fill that gap.I find that countries with more prohibitive insider tradinglaws have more diffuse equity ownership, more accurate stockprices, and more liquid stock markets. These findings are generallyrobust to controlling for measures of disclosure and enforceabilityand suggest that formal insider trading laws (especially theirdeterrent components) matter to stock market development. Thearticle suggests further avenues of empirical research on thespecific mechanisms through which insider trading laws mightmatter and the political economy of their adoption.     

Revisiting Purchasing Power Parity for India using threshold cointegration and nonlinear unit root test

This study examines the Purchasing Power Parity (PPP) hypothesis in case of India for her five major trading partners over the period of 1991M₁–2009M₂. The study used the DF-GLS unit root test and threshold autoregressive (TAR) model as well as momentum-TAR (M-TAR) models for empirical analysis. However, we relied on TAR and MTAR models based cointegration tests to draw conclusions because of their superiority to traditional cointegration techniques as these models have limit cycles, amplitude dependent frequencies, and jump phenomena. These models are capable of producing asymmetric limit cycles and are suitable for time series data. Our empirical exercise reveals that PPP hypothesis does not exist for all major trading partners in case of India. This reveals that intermediate goods face high barriers to trade in this sampled countries. This supports the argument that Indian government has not been able to strike out the proper balance between flexibility and stability between real bilateral exchange rates and thus unable to maintaining confidence in the domestic currency that has been evident from the recent fall of rupee in relation to the US dollar.     

碳交易市场中国构建的几点法律思考

《京都议定书》所列出的三种灵活机制,使温室气体减排量成为可以交易的无形商品,为碳交易市场的发展奠定了基础。由于国际法上的不确定性因素以及各国利益诉求的差异,统一的国际碳交易市场尚未形成。中国因“清洁发展机制”项目（CDM）的开发,不可避免地卷入国际碳交易市场中。从发展低碳经济的目标出发,为增强中国在国际碳交易中的竞争能力,笔者建议要适应中国承担的国际义务以及应对气候变化的立场与承诺构建以自愿性减排为主的中国碳交易市场,构建符合中国国情的碳交易法律机制。     

Explaining Corporate Environmental Performance: How Does Regulation Matter?

How and to what extent does regulation matter in shaping corporate behavior? How important is it compared to other incentives and mechanisms of social control, and how does it interact with those mechanisms? How might we explain variation in corporate responses to law and other external pressures? This article addresses these questions through an study of environmental performance in 14 pulp and paper manufacturing mills in Australia, New Zealand, British Columbia, and the states of Washington and Georgia in the United States. Over the last three decades, we find tightening regulatory requirements and intensifying political pressures have brought about large improvements and considerable convergence in environmental performance by pulp manufacturers, most of which have gone “beyond compliance” in several ways. But regulation does not account for remaining differences in environmental performance across facilities. Rather, “social license” pressures (particularly from local communities and environmental activists) and corporate environmental management style prod some firms toward better performance compliance than others. At the same time, economic pressures impose limits on “beyond performance” investments. In producing large gains in environmental performance, however, regulation still matters greatly, but less as a system of hierarchically imposed, uniformly enforced rules than as a coordinative mechanism, routinely interacting with market pressures, local and national environmental activists, and the culture of corporate management in generating environmental improvement while narrowing the spread between corporate leaders and laggards.     

Nash bargaining solutions for international climate agreements under different sets of bargaining weights

Bargaining is a tool to share collaborative gains and to facilitate reaching agreement. To improve incentives to join an international climate agreement (ICA), the Nash bargaining solution can be used to distribute cooperative gains across signatories. In this paper, we examine how the formation of ICAs and their mitigation efficiency are impacted by the use of the Nash bargaining solution. In a Nash bargaining game with heterogeneous players, bargaining powers are unequal and may be driven by different characteristics of the players. We employ different sets of asymmetric bargaining weights in order to examine the effectiveness of climate coalitions that emerge as stable agreements. Using the Nash bargaining solution, we obtain results from the stability of coalition model (STACO). We find that the Nash bargaining solution can improve the participation incentives and performances of ICAs as compared to agreements that do not redistribute gains from cooperation, but its capacity to overcome free-riding incentives is limited. However, if Nash bargaining accounts for outside options of players, we find larger stable coalitions and higher global abatement levels. In fact, Nash bargaining with outside options can stabilise the largest coalitions that can possibly be stable in our game.     

The Clean Development Mechanism: A Bane or a Boon for Developing Countries?

We analyse the gains to developing countries from the participation in the CDM during the Kyoto period (until 2010) in the event an emissions trading (ET) regime exists in the post-Kyoto period (2010–20). We show that the developing countries will always be better-off participating in the CDM if the emissions quota they get in the post-Kyoto period is not linked to their baseline emissions. However if their quota equals (or is related to) their baseline emissions, CDM participation strategy may be a preferred alternative only if the CDM price is high enough to off-set the losses of the post-Kyoto period (during ET regime) due to participation in the CDM. We simulate the CDM and ET in the Kyoto and post-Kyoto period and show that with the reduction targets given in the Kyoto Protocol for Annex B countries, participation in the CDM is beneficial to non-Annex B (developing) countries, even if their emissions quota in the post-Kyoto period (during ET regime) is determined by their baseline emissions. Abatement supply price in the post-Kyoto period however turns out to be crucial factor in this case.     

气候变化治理技术方案之中国路径

通过从经济与财政可能性、政治伦理可行性、技术和行政操作可行性三个方面将诸多零散的碳税和碳排放交易的利弊分析进行梳理和系统化,碳排放交易的现实可行性和优势得以显现。同时,通过对欧盟和美国碳排放市场建设历史经验的纵向分析和现状的横向比较,强制性碳排放市场的重要意义和碳排放市场建设渐进主义的优势得以体现。藉此,结合我国排污交易的历史经验与最新的政策法律导向,构建渐进主义原则下碳排放市场发展的法律主线和具体制度方案值得尝试。中国应在循序渐进地扩大碳排放交易主体和范围的基础上,通过不断修正市场激励、交易和辅助机制,逐步完善碳排放市场的内在交易机理并实现与国际气候治理机制的衔接,成为未来气候治理的领导者。     

Enabling the IPBES conceptual framework to work across knowledge boundaries

The IPBES conceptual framework (CF) serves an instrumental value to translate usable knowledge into policy across spatial scales, alongside a normative function to engage diverse knowledge systems, promoting inclusivity and enhancing legitimacy. It has been argued that the CF operates as a boundary object, a communication and organisation tool for those working across diverse knowledge systems, designed to help them reach shared goals. The paper focuses on this claim, exploring the three core characteristics of a boundary object: interpretive flexibility, material and organisational structure, and the recognition of dissention. We suggest that too much emphasis is placed within the CF upon interpretive flexibility, whilst meeting information needs and the work requirements of all individuals, groups and communities who use the CF are overlooked. By forcing consensus, the IPBES CF ignores the critical dimensions of a boundary object. We argue that embracing the full characteristics of a boundary object will enable the IPBES to support knowledge coproduction and translation across the knowledge systems, better achieving its goal of providing policy advice.     

Pammer and Hotel Alpenhof - ECJ decision creates further uncertainty about when e-businesses “direct activities” to a consumer’s state under the Brussels I Regulation

The European Court of Justice’s recent judgement in the joined cases C-585/08 and C-144/09 will have substantial long-term implications for European e-businesses and e-consumers trading across borders.The key question considered was whether the fact that a website can be consulted on the Internet in the Member State of the consumer’s domicile is sufficient to justify a finding that commercial or professional activities are being directed to that Member State within the meaning of Article 15(1)(c) of the Brussels I Regulation.     

Explaining the Role of Restrictive Rules in the Postreform House

Abstract Four competing explanations have emerged regarding restrictive rules in Congress. Informational theory claims that rules reduce information costs and facilitate committee specialization. The distributional perspective suggests that rules enforce legislative bargains and help members achieve gains‐from‐trade. Another claim is that rules increase the Rules Committee's independent influence over policy. Lastly, partisan theory asserts that rules are used to increase the majority party's influence over policy. Abstract This analysis tests these claims during the 97th, 98th, 104th, and 105th Congresses. The findings demonstrate that theoretical constructs developed in earlier analyses of special rules are not robust over time and across legislative contexts. The results refute majoritarian assertions that rules are used as informational devices. Similarly, little evidence supports the claim that Rules Committee preferences independently affect rule assignment. Instead, a partisan principal‐agent framework emerges as the most useful construct to explain procedural choice in the postreform House.     

Insider trading and the public enforcement of private prohibitions: some complications in enforcing simple rules for a complex world

Accepting the argument made by Manne, Epstein and others that firms wishing to allow their employees to insider trade should be permitted to do so, this article shows that there is still a crucial role for government in regulating insider trading. In particular, allowing employees to profit by insider trading is a form of employee compensation that, in contradistinction from conventional forms of equity compensation, results in unknowable and effectively unlimited costs to the company. Since providing employee compensation in this form causes the company to lose control of its compensation expense, even if insider trading were legal, virtually every company would rely on conventional forms of employee compensation and prohibit its employees from insider trading. But, pace Manne, Epstein and others, companies lack the means to detect insider trading by their employees, and even when they do catch employees insider trading, companies can impose only mild contractual sanctions, generally not exceeding disgorgement of profits and dismissal. As a result, although an efficient agreement between a company and its employee would prohibit the employee from insider trading, this prohibition cannot be effectively enforced by the company. Government, with its usual law enforcement powers, is better able to detect insider trading and can impose more severe sanctions on violators, including criminal penalties. Government should thus enforce a ban on insider trading in those instances, which will be virtually all instances, in which a company prohibits its employees from insider trading. The efficient solution is thus a hybrid system of private prohibition and public enforcement. Such a system is not unusual but the norm. Employers prohibit employees from embezzling their money and stealing their property, and employees are subject to contractual sanctions and dismissal for violating these prohibitions, but we still need statutes against theft to generate an optimal level of deterrence. This is all the more true when the employee misappropriates information, which is much harder to detect than a theft of money or property.

     

追溯与寻明:国际法视角下的碳排放权单位研究

自以《京都议定书》为基础的市场化机制建立以来,经过近20年的发展,全球碳金融市场呈现蓬勃发展的态势,交易量大幅提升,成交金额不断攀升,市场化机制在夯实中不断完善和发展。同时,争端与纠纷日益增加,国际多边环境公约调整下的碳排放权机制部分地在WTO体制下进行规制,成为众多学者的憧憬。碳排放权单位体现的既不是GATT框架下的"产品",也不是GATS框架下的"服务",而是在经济上反映出特殊的金融衍生产品的属性。然而,碳排放权单位交易商提供服务的行为契合GATS金融服务要求,因此交易商可依据GATS享受跨国服务领域中的最惠国待遇,并可将与WTO规则相关的争端诉诸WTO争端解决机制,实现环境争端解决的规范化、法制化。     

The Consistency of WTO Rules: Can the Single Undertaking Be Squared with Variable Geometry?

The diversity of countries that negotiate commitments in theWorld Trade Organization (WTO), and the distinctions betweentheir legal and constitutional systems, implies important differencesin how agreements are approved, implemented, and enforced. Althoughconsistency is among the desirable attributes to which the multilateraltrading system should strive, it cannot be achieved at the expenseof all other desiderata. Among the reasons for relaxation ofthis goal is the need to accommodate the different legal systemsand levels of economic development among Member States, as wellas the demands for flexibility in negotiations. This paper reviewsthe development and current status of the debate over consistencyin the multilateral system, with special emphasis on the perspectivesof three different sets of participants: the United States,the European Union (EU), and developing countries. In the trade-offbetween the depth and the width of the trading system, the paperasks whether WTO Members should be more interested in expandingthe scope of globally agreed rules or in securing countries’adherence to them? It explores the possible consequences forthe Doha Development Agenda (DDA) if the US Congress cannotbe convinced to make a new grant of trade promotion authority(TPA) after the current one expires. It also discusses whetherthe single undertaking should continue to shape the terms ofthe DDA. In discussing the WTO’s approach to decision-makingand the possible need for reforms thereto, the paper also considershow best and on what grounds should new issues be introducedon the negotiating agenda. The paper argues that whether ornot the DDA is conducted on the basis of a single undertaking,and with or without TPA, the multilateral trading system willcontinue to provide for less than full consistency.     

Kyoto Mechanisms: Key Issues for Policy-makers for COP-6

This article provides an assessment of the "Kyoto mechanisms" – joint implementation, Clean Development Mechanism (CDM) and emissions trading established pursuant to Articles 6, 12 and 17 of the Kyoto Protocol. It focuses on significant policy issues raised by supplementarity, liability, equity and the design considerations relevant to operationalizing the mechanisms nationally and internationally.