The efficiency gap behind the Annex I Parties under the Kyoto Protocol

Abstract

With the ratification of the Kyoto Protocol, an era of global efforts to combat climate change is beginning. Countries belonging to Annex I Parties are obligated to meet their target in reducing greenhouse gas (GHG) emissions. This paper broadens the scope of research to compare the performance between two groups, Annex II Parties and economies in transition (EIT) Parties (both of which are in the set of Annex I Parties), undertaking responsibilities for GHG emission reduction. This differs from the traditional application of evaluation and aims to identify inherent efficiency differences across systems, rather than separately from the potential inefficiency of individual countries. An efficiency gap was found between the group of Annex II Parties and the group of EIT Parties, by adjusting efficiency levels. Considering a reference set, efficient Annex II countries are referenced, both within their own group and within the EIT group; efficient EIT countries are only benchmarked within the group. The evidence provided can shed light on the function of joint implementation, that Annex I countries will cooperate to reduce GHG emissions, based on their common, but differentiated, responsibilities and capacity for global climate change.