Climate change and marginal abatement cost: Policy insights on international treaty

This study examines the economic implications of climate policies, specifically evaluating the effectiveness of Kyoto Protocol (and the institutional setting emerging from it) in reducing carbon emissions. By analyzing data from 36 OECD countries between 1992 and 2019, we assess marginal abatement costs and evaluate the impact of the Kyoto Protocol. The findings indicate that the protocol relates to an increase in marginal abatement costs, with renewable energy consumption and environmental patents also playing significant roles. Based on these results, we propose policy recommendations that emphasize strict adherence to the Paris Agreement, increased use of renewable energy, and incentives for environmental innovation. By highlighting the economic mechanisms behind climate policy effectiveness, this study enhances our understanding of the challenges and opportunities in mitigating climate change.