Investigation of trading greenhouse gas emissions permits, between Iran and BRICS member countries

Document Type : Original Article

Authors

1 Senior Researcher at the Institute of International Energy Studies

2 Faculty of Economic and Administrative Sciences of Ferdowsi University of Mashhad

Abstract

Due to the transnational nature of carbon dioxide emissions, more countries are required to participate in achieving global emission reduction targets. Designing and selecting policy tools to increase countries' incentives for participation is critical. Because cost reduction is costly, countries are usually looking for ways to maximize net profits. Emission permit trading markets are one of the best and most efficient policies in this field. With the increasing emission share of BRICS and Iran, proper participation and policy-making in these countries have become more important. In order to develop literature and examine the impact of using this tool on Iran's reducing costs, after determining the allowable emission cap and estimating the cost of achieving the allowable cap, the amount of savings resulting from market participation has been calculated. The results show that if Iran does not participate in the formed coalitions, the cost of reducing the emissions will be equal to $ 17125422.5 However, with the formation of the coalition between Iran and the countries of China, India, and South Africa, this cost will be reduced to $ 16689688.9 million, and the amount of savings will be $ 435733.6 million.

Keywords