ABSTRACT
To evaluate the impacts of implementing the Kyoto Protocol, we have taken our point of departure from a numerical static partial equilibrium model that integrates energy markets with an international market for emissions trading. The model is used to compare the impacts of the Kyoto Protocol both with and without the participation of the United States. The main results from the model calculations are :
• If the Kyoto Protocol is implemented without the participation of the United States, — then the effect on global emissions will be reduced from small
to insignificant, — and the international permit price will be reduced to one-
third what it would have been if the United States had upheld its commitments.
