Fair-ish and Balanced-ish
Tuesday, February 18, 2003
Costs of Kyoto
A recent (2001) paper in the journal Nature, has quite an interesting conclusion. It looks at the costs of the Kyoto protocol in Italy, and concludes that if local external costs are factored in, the Kyoto protocol will save Italy money.
The net effect of implementing Kyoto over business as usual is:
* a 17% reduction in greenhouses gases
* 1,068 million euros saved locally
* 761 million euros saved globally
* costs of 308 million euros
The authors note that one potential problem with these estimates, is the costs of Kyoto. They looked at the electricity sector, and assumed that other industries (which produce approx. 2/3 greenhouse gas emissions) will suffer similar costs to the electricity sector. If these sectors do cost significantly more, then expect the costs to rise by up-to 3 fold. However, even then Kyoto has a net benefit.
Source: Giulio A. De Leo, Luca Rizzi, Andrea Caizzi, and Marino Gatto. The Economic Benefits of the Kyoto Protocol Nature, 2001, 413, 478 - 479