On the fair division of greenhouse gas abatement cost
AbstractThis paper introduces a solution for the fair division of emission reduction costs in the climate change regime. Our primary focus is on the fair division of efficiency gains that arise from exchanging the initial allocation of emission entitlements, rather than the initial allocation itself. We propose to complement the competitive Walrasian solution with welfare bounds, the ethical justification of which rests on commonality of ownership. Simulations with an intertemporal computable general equilibrium model illustrate the relevance of such welfare bounds. For a wide range of initial allocations of emission entitlements - including an equal per capita allocation - we find that developing countries should be fully compensated for their emission abatement efforts, but should not receive any further transfers.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Resource and Energy Economics.
Volume (Year): 30 (2008)
Issue (Month): 2 (May)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505569
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Moulin, Herve, 1992. "An Application of the Shapley Value to Fair Division with Money," Econometrica, Econometric Society, Econometric Society, vol. 60(6), pages 1331-49, November.
- Alan Manne & Richard Richels, 1992. "Buying Greenhouse Insurance: The Economic Costs of CO2 Emission Limits," MIT Press Books, The MIT Press, edition 1, volume 1, number 026213280x, December.
- Moulin, Herve, 1991.
"Welfare bounds in the fair division problem,"
Journal of Economic Theory,
Elsevier, vol. 54(2), pages 321-337, August.
- Moulin, Herve & Thomson, William, 1988. "Can everyone benefit from growth? : Two difficulties," Journal of Mathematical Economics, Elsevier, vol. 17(4), pages 339-345, September.
- Barrett, Scott, 2001. "International cooperation for sale," European Economic Review, Elsevier, vol. 45(10), pages 1835-1850, December.
- Aldy, Joseph & Barrett, Scott & Stavins, Robert, 2003.
"Thirteen Plus One: A Comparison of Global Climate Policy Architectures,"
Working Paper Series
rwp03-012, Harvard University, John F. Kennedy School of Government.
- Joseph E. Aldy & Scott Barrett & Robert N. Stavins, 2003. "Thirteen Plus One: A Comparison of Global Climate Policy Architectures," Working Papers 2003.64, Fondazione Eni Enrico Mattei.
- Rose, Adam, 1998. "Burden-sharing and climate change policy beyond Kyoto: implications for developing countries," Environment and Development Economics, Cambridge University Press, vol. 3(03), pages 347-409, July.
- Adam Rose & Brandt Stevens & Jae Edmonds & Marshall Wise, 1998. "International Equity and Differentiation in Global Warming Policy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 12(1), pages 25-51, July.
- Lau, Morten I. & Pahlke, Andreas & Rutherford, Thomas F., 2002. "Approximating infinite-horizon models in a complementarity format: A primer in dynamic general equilibrium analysis," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 26(4), pages 577-609, April.
- Welsch, Heinz, 1993. "A CO2 agreement proposal with flexible quotas," Energy Policy, Elsevier, vol. 21(7), pages 748-756, July.
- Chichilnisky, Graciela & Thomson, William, 1987. "The walrasian mechanism from equal division is not monotonic with respect to variations in the number of consumers," Journal of Public Economics, Elsevier, vol. 32(1), pages 119-124, February.
- Rose, Adam & Zhang, ZhongXiang, 2003.
"Interregional burden-sharing of greenhouse gas mitigation in the United States,"
12893, University Library of Munich, Germany.
- Adam Rose & Zhong Zhang, 2004. "Interregional burden-sharing of greenhouse gas mitigation in the United States," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 9(4), pages 477-500, October.
- Richard Tol, 2002. "Estimates of the Damage Costs of Climate Change, Part II. Dynamic Estimates," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 21(2), pages 135-160, February.
- Christoph BÃ¶hringer & Thomas Rutherford, 2002. "Carbon Abatement and International Spillovers," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 22(3), pages 391-417, July.
- Bohringer, Christoph & Welsch, Heinz, 2004. "Contraction and Convergence of carbon emissions: an intertemporal multi-region CGE analysis," Journal of Policy Modeling, Elsevier, Elsevier, vol. 26(1), pages 21-39, January.
- Edmonds, Jae & Wise, Marshall & Barns, David W, 1995. "Carbon coalitions : The cost and effectiveness of energy agreements to alter trajectories of atmospheric carbon dioxide emissions," Energy Policy, Elsevier, vol. 23(4-5), pages 309-335.
- FrÃ©dÃ©ric Babonneau & Alain Haurie & Marc Vielle, 2013. "A robust meta-game for climate negotiations," Computational Management Science, Springer, vol. 10(4), pages 299-329, December.
- DAUBANES Julien, 2009.
"Changement climatique, instruments ÃƒÂ©conomiques et propositions pour un accord post-Kyoto : une synthÃƒÂ¨se,"
LERNA Working Papers, LERNA, University of Toulouse
09.19.295, LERNA, University of Toulouse.
- Daubanes, Julien, 2009. "Changement climatique, instruments économiques et propositions pour un accord post-Kyoto: une synthèse," TSE Working Papers 09-006, Toulouse School of Economics (TSE).
- Christoph Böhringer & Nicholas Rivers & Tom F. Rutherford & Randall Wigle, 2014.
"Sharing the burden for climate change mitigation in the Canadian federation,"
V-362-14, University of Oldenburg, Department of Economics, revised Jan 2014.
- Christoph Böhringer & Nicholas Rivers & Thomas F. Rutherford & Randall Wigle, 2013. "Sharing the burden for climate change mitigation in the Canadian federation," ZenTra Working Papers in Transnational Studies 30 / 2014, ZenTra - Center for Transnational Studies, revised Jan 2014.
- Lange, Andreas & Löschel, Andreas & Vogt, Carsten & Ziegler, Andreas, 2010.
"On the self-interested use of equity in international climate negotiations,"
European Economic Review,
Elsevier, vol. 54(3), pages 359-375, April.
- Andreas Lange & Andreas Löschel & Carsten Vogt & Andreas Ziegler, 2009. "On the Self-interested Use of Equity in International Climate Negotiations," NBER Working Papers 14930, National Bureau of Economic Research, Inc.
- Thomas Bernauer & Lena Maria Schaffer, 2010. "Climate Change Governance," IED Working paper, IED Institute for Environmental Decisions, ETH Zurich 10-12, IED Institute for Environmental Decisions, ETH Zurich.
- Andries Hof & Michel Elzen & Detlef Vuuren, 2009. "Environmental effectiveness and economic consequences of fragmented versus universal regimes: what can we learn from model studies?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 9(1), pages 39-62, February.
- Carlsson, Fredrik & Kataria, Mitesh & Krupnick, Alan & Lampi, Elina & Löfgren, Åsa & Qin, Ping & Sterner, Thomas & Chung, Susie, 2010.
"A Fair Share : Burden-Sharing Preferences in the United States and China,"
Working Papers in Economics
471, University of Gothenburg, Department of Economics.
- Carlsson, Fredrik & Kataria, Mitesh & Krupnick, Alan & Lampi, Elina & LÃ¶fgren, Ã…sa & Qin, Ping & Sterner, Thomas, 2013. "A fair share: Burden-sharing preferences in the United States and China," Resource and Energy Economics, Elsevier, Elsevier, vol. 35(1), pages 1-17.
- Frederik Carlsson & Mitesh Kataria & Alan Krupnick & Elina Lampi & Ã…sa LÃ¶fgren & Ping Qin & Thomas Sterner & S. Chung, 2010. "A Fair Share - Burden-Sharing Preferences in the United States and China," Jena Economic Research Papers 2010-074, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Kverndokk, Snorre & Rose, Adam, 2008.
"Equity and justice in global warming policy,"
24272, University Library of Munich, Germany.
- Kverndokk, Snorre & Rose, Adam, 2008. "Equity and Justice in Global Warming Policy," International Review of Environmental and Resource Economics, now publishers, vol. 2(2), pages 135-176, October.
- Anthoff, David, 2009. "Optimal Global Dynamic Carbon Taxation," Papers, Economic and Social Research Institute (ESRI) WP278, Economic and Social Research Institute (ESRI).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.