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Developing countries have generally been overlooked in downstream carbon trading-based policy research. This can be attributed to the greater responsibility of developed economies for climate change, and the greater socio-demographic, political and technological challenges faced by their less-developed counterparts. This paper attempts to address this gap by examining the practicality of implementing Personal Carbon Trading (PCT) for personal road transport in Kenya. PCT is investigated with a focus on political considerations, potential system operation and the distributional impact of quota allocation to motorists. Three quota allocation methods are modelled using data from a survey of 500 motor vehicle owners in Nairobi and Mombasa counties. Equal per-capita, equal per-vehicle and needs-based allocation methods are modelled and assessed to determine the distributional impact on various groups of interest. Emissions were found to be highly correlated to vehicle engine size and the number of dependents per vehicle, but not to area of residence or income levels. None of the three allocation methods disproportionately imposed burdens on vulnerable groups, and all exhibited progressive tendencies. The proposed system is intended to add new insight into the possibility of PCT becoming a globally inclusive policy option. Key Policy Insights Despite PCT being a bold policy proposal even for developed countries, less developed counterparts can meet the political, institutional and technological requirements to implement it. The wealth of functionality available through SIM card features on cheap and abundant mobile phones may unlock a simple and cost-effective, globally-applicable PCT system. Public resistance to fuel price increases stems from the lower income demographic which is, conversely, rewarded with surpluses under PCT. Equal-per capita allocation remains the most progressive method. Needs-based allocation is highly progressive and may be worth considering when more stringent targets are deemed necessary. [ABSTRACT FROM AUTHOR]

The number of carbon pricing mechanisms implemented in developing countries is increasing. Even though there is regional fragmentation in terms of climate change strategies in Latin America, market-based initiatives are taking shape also in this region. Post-2020, combining these efforts towards carbon integration via an Emissions Trading Scheme (ETS) could be an option for Latin America to adhere to more cohesive and ambitious climate policy actions. Given the lack of quantitative studies, this paper aims to provide preliminary evidence on the appropriateness of this mitigation policy, highlighting potential environmental and economic outcomes in Latin America, as well as identifying trade patterns and the effects of revenue recycling for the region. Using a dynamic-recursive computable equilibrium model, a hypothetical Latin American ETS regulates only carbon emissions from the electricity generation and energy-intensive sectors. Regional carbon-integration among developing countries in this way demonstrates that it is possible to curb emissions at minimum cost. The distributional effect of linking shows a financial flow from Brazil and Mexico to the rest of Latin America, comprising a wider abatement effort within a shared carbon price. There are opportunities from revenue-recycling, which plays an important role in alleviating the additional costs from the policy. The advantage of this approach is to culminate in broad participation where competitiveness concerns may be addressed along with transformations of the energy system. However, to effectively address climate change, additional sectors should be considered for inclusion in the proposed ETS, in line with the region's energy and economic profiles. Key policy insights A regional carbon policy based on emissions trading in Latin America would expand opportunities for mitigation at lower cost. Brazil and Mexico would import allowances more cost-effectively from the rest of Latin America in the linked scenario. Further energy substitution towards low-carbon sources would be achieved with revenue recycling. A linked ETS system should include land use and forestry-related emissions. [ABSTRACT FROM AUTHOR]

Climate policy across the world is proceeding at a highly variable pace, with some places very committed to decarbonizing their economies and others just beginning. Emerging nations are generally just starting along this journey. However, among the few nation states that have pledged to achieve carbon neutrality, is Bhutan, a least developed country. Carbon neutrality is an ambitious climate policy that is increasingly being recognized as necessary in order to stabilize global temperature rise at 1.5°C. However, Bhutan is likely to face significant challenges in maintaining this status as the country balances its desire to grow in economic opportunities (GDP) and in human happiness (GNH). Little research has been conducted inside the policy processes to better understand how Bhutan will maintain carbon neutrality. Through open-ended, semi-structured interviews with key stakeholders, this study provides an inside view on the current situation and future challenges that Bhutan may face, along with the complexities associated with implementing and maintaining an ambitious carbon neutral policy. The paper highlights Bhutan's story and how it could be useful for policy learning and knowledge sharing, especially in the context of emerging nations' climate governance. [ABSTRACT FROM AUTHOR]