Place of publishing:
Subject and Keywords:
Implementation of the Kyto Protocol raises the question of how to verify changes in net greenhouse gas (GHG) emissions on the country scale. Estimates show that the uncertainties of the reported net emissions can be great, depending on how they are accounted and which GHG emissions and/or removals are considered. We study the problem of testing fulfilment of the Kyoto obligations taking into account big uncertainty of the observed emissions. Our proposition for doing it is based on introduction of undershooting emission limitation or reduction commitments and specifying the risk of not doing so. This leads to conditions that can be easily checked both deterministically and stochastically. In a follow-up step, we then address the issue of emission trading in the presence of uncertainty. Trading rules are influenced as the costs of bargained emission units change due to the uncertainty of emission observation.
Language of abstract:
Projects co-financed by:
Operational Program Digital Poland, 2014-2020, Measure 2.3: Digital accessibility and usefulness of public sector information; funds from the European Regional Development Fund and national co-financing from the state budget.