sectoral economic costs and benefits of ghg mitigation - IPCC

Ron Knapp
the adverse impact of Kyoto. Other market failures or impediments should be addressed as a
priority as these may also make a substantial – and in some cases a greater – contribution to
solving the issue of reducing GHG emissions. Removal of rail transport subsidies and adoption
of market pricing policies in countries such as China, India and Russia could see a significant
change in related sectors such as coal. Market reforms of this nature may be more effective in
delivering GHG emission reductions than ‘command and control’ often put forward as GHG
solutions.
It is possible to reduce the economic impact of the Kyoto Protocol: the greater the use of
voluntary measures, Kyoto Mechanisms and effective market solutions, the more efficient the
outcome. Technology can deliver successful coal outcomes in response to market circumstances -
this will encourage cleaner coal technology for combustion efficiency and environmental
solutions.
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