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Mitigation versus compensation in global warming policy

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  • Ross McKitrick

    ()
    (University of Guelph)

Abstract

Policy discussions on global warming are focused on mitigation and adaptation. Here the role of ex post compensation as a substitute for ex ante mitigation is considered. In a simple 2-period model the salient features of the global warming problem suggest mitigation is difficult to motivate. A key problem is that damages are very hard to identify even after the fact. The roles of endogenous private savings and a compensation fund as an alternative to ex ante mitigation are explored.

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File URL: http://www.accessecon.com/pubs/EB/2001/Volume17/EB-01Q20002A.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 17 (2001)
Issue (Month): 2 ()
Pages: 1-6

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Handle: RePEc:ebl:ecbull:eb-01q20002

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Keywords: Climate change;

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  1. Stephen P. A. Brown, 1998. "Global warming policy: some economic implications," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, Federal Reserve Bank of Dallas, issue Q IV, pages 26-35.
  2. Mendelsohn, Robert & Nordhaus, William D & Shaw, Daigee, 1994. "The Impact of Global Warming on Agriculture: A Ricardian Analysis," American Economic Review, American Economic Association, American Economic Association, vol. 84(4), pages 753-71, September.
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