Implications of a dynamic target of greenhouse gases emission reduction: the case of Argentina

The purpose of this paper is to discuss the greenhouse gases (GHG) emission target adopted by Argentina. It contains a summary of the process that led to the formulation of the emission target, including GHG inventories, macroeconomic and sectoral projections, and mitigation options. Fixed and dynamic indexes such as the Carbon Intensity Index are discussed, concluding that the latter is not appropriate for most developing countries. This is the case, in particular, for countries whose GHG emissions are not solely dependent on GDP growth, but also on other variables, such as international prices and market conditions for their agricultural products. The index recommended for Argentina was based on the square root of GDP. It went a step further by producing, for the chosen level of reduction, not only a positive relation between GDP and allowable emissions, but also a relation of the same sign between GDP and emission reductions.