International climate protection investments (Joint Implementation and Clean Development Mechanism projects) are burdened with problems of contract enforcement, which prevent the realisation of efficiency gains associated with these investments. The paper analyses this problem from the...

The Kyoto Protocol’s approach of assigning emission targets, or “caps,” exacerbates problems with international cooperation and commitment. This has caused the developing countries, which account for the fastest growing half of emissions, to reject caps. Global carbon pricing addresses...

The three Kyoto flexible mechanisms emissions trading, the clean development mechanism (CDM), and Joint Implementation (JI) have always been controversial. Proponents saw the mechanisms as clever tools to ensure environmental outcomes were achieved at least cost. Reducing the costs of...