Greenhouse Gas Intensity Targets vs. Absolute Emission Targets

Abstract

The United Nations Framework Convention on Climate Change (UNFCCC) calls for the stabilization of greenhouse gas concentrations at levels that prevent dangerous anthropogenic interference with the climate system. As a first step, the Kyoto Protocol defines greenhouse gas emission targets for industrialized countries. For further necessary steps, nations may want to agree on additional targets for possibly more countries. This chapter analyzes the pros and cons of two ways to formulate emission limitation or reduction targets for countries under an international climate agreement: “Absolute targets” and “intensity targets.” Emission limitation or reduction targets for countries under the international climate negotiations can be formulated as absolute targets, defining a fixed amount of allowed emissions, or as intensity targets, defining an amount of allowed emissions per unit of the Gross Domestic Product. This chapter discusses the pros and cons of these types of emission limitation or reduction targets. It has been found that intensity targets can provide advantages over absolutetargets as they can lead to more certainty whether a target will be reached and they can account for unexpected economic changes.