Includes bibliographical references and index.

1. Introduction / Johan Albrecht -- 2. Climate policy instruments and strategies : EU and US perspectives / Peter Zapfel and David Gardiner -- 3. Economic efficiency of cross-sectoral emissions trading in CO2 in the European Union / Pantelis Capros ... [et al.] -- 4. Why did the EU propose to limit emissions trading? : a theoretical and empirical analysis / Edwin Woerdman -- 5. Supplementarity in the European carbon emission market / Johan Eyckmans and Jan Cornillie -- 6. On the optimal timing of reductions of CO2 emissions : an economist's perspective on the debate on 'When Flexibility' / Henri L.F. de Groot -- 7. Joint implementation as a flexible instrument : a CGE analysis between a developing and an industrialized country / Christoph Böhringer, Klaus Conrad and Andreas Löschel -- 8. The Australian greenhouse challenge : lessons learned and future prospects for voluntary approaches in climate policy / Rory Sullivan and Robin Ormerod -- 9. The clean development mechanism : potential, promise and limitations / Jyoti P. Painuly -- 10. Risk management of joint implementation and clean development mechanism projects through carbon investment funds / Josef Janssen -- 11. On the dynamic efficiency and environmental integrity of GHG tradable quotas / Khalil Helioui.

Instruments for Climate Policy focuses on economic and political aspects related to the recent proposals and the debate on limits in flexibility, and discusses EU and US perspectives on climate policy instruments and strategies. This is followed by chapters on economic efficiency and the use of flexible instruments as well as contributions to the debate on 'when flexibility', on the arguments behind the EU ceilings proposal and on voluntary approaches to climate policy. One of the main conclusions reached with respect to proposals for limiting flexibility is the need to evaluate simultaneously their economic, ecological and international political consequences. The authors include both important policymakers and leading academics in the area.