GEP Research Paper 01/09
A Strategic Trade and Environmental Policy Argument for the Kyoto Protocol
Zhihao Yu
Abstract
The paper identifies a unique aspect of the Kyoto Protocol from the view of strategic trade and environmental policy. While investigating the horizontal "profit-shifting", vertical "rent-extracting", and "collusion-facilitating" effects, it focuses on the strategic behaviour of the OPEC and the potential role of the Protocol on oil-rent extraction. Among other things, it is shown that those member countries that export oil can also benefit from the Protocol even in the absence of environmental considerations, and hence suggests a new argument for the Kyoto Protocol for participating countries.
Issued in May 2001.
This paper is available in PDF format .