Economic Impacts and Environmental Effectiveness of the Present Climate Regime

This chapter analyses the main features of the present climate regime. To achieve this goal, we first assess the economic and environmental consequences of the US decision to withdraw from the Kyoto Protocol and of the subsequent Marrakech agreement. The work will be done by overviewing the many recent empirical contributions on this topic and by providing original results using our own modelling framework. In particular, we would like to focus both on long term (technological innovation) and short term (the price of emission permits and abatement costs) impacts. The role of different countries in the present climate regime, their bargaining power, their ability to influence future negotiations will also be analysed