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Some Economics of Global Warming

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  • Jean Tirole

    ()
    (Toulouse School of Economics)

Abstract

This paper reflects on the economics and politics of an international climate policy agreement. The international community has so far failed to design institutions and a compensation scheme that would lead to an abatement effort commensurate with the IPCC recommendations that it attempts tofollow. The paper first lays out what could be a proper institutional design, minimizing the impact of abatement on the world consumer’s income, and thereby making the fight against climate change more credible. It then sketches a governance mechanism as well as an approach to compensation. Finally, it concludes with a roadmap for the negotiation.

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File URL: http://www.rivistapoliticaeconomica.it/2008/nov-dic/pdf/Tirole_en.pdf
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Bibliographic Info

Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 98 (2008)
Issue (Month): 6 (November-December)
Pages: 9-42

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Handle: RePEc:rpo:ripoec:v:98:y:2008:i:6:p:9-42

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Keywords: climate change; command and control; cap and trade; international agreement;

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  1. GOLLIER Christian, 2008. "Discounting with fat-tailed economic growth," LERNA Working Papers 08.19.263, LERNA, University of Toulouse.
  2. Hahn, Robert W., 2000. "The Impact of Economics on Environmental Policy," Journal of Environmental Economics and Management, Elsevier, vol. 39(3), pages 375-399, May.
  3. Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey,Elizabeth M., 2005. "Markets for Clean Air," Cambridge Books, Cambridge University Press, number 9780521023894.
    • Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey,Elizabeth M., 2000. "Markets for Clean Air," Cambridge Books, Cambridge University Press, number 9780521660839.
  4. Hahn, Robert W & Stavins, Robert N, 1992. "Economic Incentives for Environmental Protection: Integrating Theory and Practice," American Economic Review, American Economic Association, vol. 82(2), pages 464-68, May.
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