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Who Should Abate Carbon Emissions? A Note

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  • Kristen A. Sheeran

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    Abstract

    Economists commonly believe that failure to equalize the marginal cost of carbon abatement across countries implies a loss of global efficiency. Chichilnisky and Heal [(1994), Economic Letters 44, 444] first challenged this consensus a decade ago, demonstrating that, in general, efficiency does not require equalizing marginal abatement costs. This note revisits that important debate. It provides the missing intuition behind Chichilnisky and Heal’s surprising result, explains what critical assumption gives rise to their result, and clarifies the role a social welfare function plays in their model. The implications of Chichilnisky and Heal’s result are increasingly important, given international debate over the preferential role given to developing countries in the Kyoto Protocol and the role those countries will play in future climate negotiations. Copyright Springer Science+Business Media, Inc. 2006

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    Bibliographic Info

    Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

    Volume (Year): 35 (2006)
    Issue (Month): 2 (October)
    Pages: 89-98

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    Handle: RePEc:kap:enreec:v:35:y:2006:i:2:p:89-98

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    Web page: http://www.springerlink.com/link.asp?id=100263

    Related research

    Keywords: Climate changes; Kyoto Protocol; emissions trading; equity; efficiency; Q20; H40;

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    1. Graciela Chichilnisky & Geoffrey Heal, 1993. "Who Should Abate Carbon Emissions? An International Viewpoint," NBER Working Papers 4425, National Bureau of Economic Research, Inc.
    2. Brown, Donald J & Heal, Geoffrey, 1979. "Equity, Efficiency, and Increasing Returns," Review of Economic Studies, Wiley Blackwell, vol. 46(4), pages 571-85, October.
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    Cited by:
    1. Franck Lecocq & Jean-Charles Hourcade, 2012. "Unspoken ethical issues in the climate affair: Insights from a theoretical analysis of negotiation mandates," Working Papers 49105, Institut National de la Recherche Agronomique, France.
    2. Antoine d'Autume & Katheline Schubert & Cees Withagen, 2011. "Should the carbon price be the same in all countries?," Documents de travail du Centre d'Economie de la Sorbonne 11076, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    3. Richard S.J. Tol, 2013. "Modified Ramsey Discounting for Climate Change," Working Paper Series 6313, Department of Economics, University of Sussex.
    4. Groot, Loek, 2010. "Carbon Lorenz curves," Resource and Energy Economics, Elsevier, vol. 32(1), pages 45-64, January.
    5. repec:hal:journl:halshs-00654239 is not listed on IDEAS
    6. John Chipman & Guoqiang Tian, 2012. "Detrimental externalities, pollution rights, and the “Coase theorem”," Economic Theory, Springer, vol. 49(2), pages 309-327, February.
    7. Snorre Kverndokk & Adam Rose, 2008. "Equity and Justice in Global Warming Policy," Working Papers 2008.80, Fondazione Eni Enrico Mattei.
    8. Olivier Godard, 2011. "Climate justice, between global and international justice -Insights from justification theory," RSCAS Working Papers 2011/56, European University Institute.
    9. Anthoff, David, 2009. "Optimal Global Dynamic Carbon Taxation," Papers WP278, Economic and Social Research Institute (ESRI).
    10. Elizabeth A. Stanton, 2012. "The Tragedy of Maldistribution: Climate, Sustainability, and Equity," Sustainability, MDPI, Open Access Journal, vol. 4(3), pages 394-411, March.
    11. Richard S.J. Tol, 2013. "Modified Ramsey Discounting for Climate Change," Tinbergen Institute Discussion Papers 13-130/VIII, Tinbergen Institute.

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