Economic models suggest that in many cases, market leakage rates of greenhouse gas abatement reach the two-digit percentage range. Consequently, the Marrakesh Accords require Clean Development Mechanism (CDM) projects to account for leakage. Despite this, most project proponents neglect market...

This paper examines the impact of Kyoto Protocol target setting regime on environmental efficiency and carbon shadow pricing. We extract shadow price estimates and efficiency scores from a comprehensive dataset of 125 countries in the first Kyoto commitment period (2008-2012) using a stochastic...