Joint implementation of sulphur emission reductions may offer pal ties
to the 1994 Oslo Protocol on Further Reductions of Sulphur Emissions
the opportunity to meet the obligations contained in the Protocol in a
more flexible manner, Sulphur pollution in Europe is characterized by
an important spatial dimension and this paper examines how this spati
al dimension influences the design of a joint implementation system fo
r sulphur emission reductions in Europe, An original example of a join
t implementation system based around emission exchange rates is used t
o illustrate the difficulties of incorporating the spatial component i
nto an emission exchange system, Simulations of possible transactions
support the finding that there is likely to be a trade off between the
scope for cost savings and the level of environmental protection offe
red by joint implementation of sulphur emission reductions in Europe,
The paper suggests that a joint implementation system where countries
negotiate each transaction on a case by case basis is more likely to b
e acceptable to all parties to the protocol, This approach offers the
greatest flexibility of meeting the interests of the two trading count
ries and third party nations who may be affected by the transaction, H
owever, it is concluded that the longterm environmental objectives of
the protocol and the administrative complexity of such a system may li
mit the scope for joint implementation of sulphur emission reductions
in Europe. Copyright (C) 1996 Elsevier Science Ltd.