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05819

The present publication explores the institucional requirements for both policy - making and the organization of a global market in CO2 emission allowances. It shows that one can start with a simple pilot scheme based on the joint implementation of commitments, which constitutes the cornerstone of the framework convention, and evolve gradually to a more complete system on the basis of learning by doing. Since the use of markets can dramatically lower the cost of controlling greenhouse gas emissions, it is clearly in the self - interest of major emitters to act as market leaders willing to pioneer.

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