Economic dimensions of technological and global responses to the Kyoto protocol

This paper examines economic aspects of the Kyoto protocol on climate change, focusing on the protocol’s longer-term impact and possible global evolution. Specifically, the analysis considers the economics of likely technological responses to the protocol and the implication of international dissemination of technologies and institutional practices, including the wider future development of policies and commitments. It is argued that these factors, in tandem with the protocol’s provisions on the clean development mechanism, technology transfer, and the structure of rolling commitment periods, mean that the protocol offers an effective basis for long-term solutions to the problem of climate change.