3. In fact, the Kyoto treaty is moving ahead without U.S. participation. Referring to this chapter and Chapter 17, what important piece of knowledge do we hope to get from the European Trading System? Yale economist William Nordhaus has done a lot of work on benefit–cost analysis of theKyoto treaty. Bearing inmind the vast uncertainties associated with estimating both the costs and the benefits of the the Kyoto emission reductions, consider his results in Figure 22.3. By 2070, relative to a business-as-usual increase in CO2 emissions, the original Kyoto Protocol would have led to global emission cuts of 15%, and the efficient policy would lead to cuts of about 10%.