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Designing a Realistic Climate Change Policy that includes Developing Countries

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Author Info
Warwick J. McKibbin () (Australian National University, Research School of Pacific and Asian Studies, Economics Division, The Brookings Institution)
Peter J. Wilcoxen (University of Texas, Economics Department, The Brookings Institution)

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Abstract

In earlier papers we have argued that the Kyoto Protocol is not sustainable as a global climate change policy and have proposed an alternative policy regime based on a coordinated but decentralised system of national permit trading systems with a fixed internationally negotiated price for permits. In this paper we extend this earlier proposal to include an explicit mechanism for participation by developing countries. The idea is to give incentives for carbon abatement in developing countries through price signals without imposing short or medium term costs in these economies. This new system is based on the creation of two types of assets in each participating country - emission endowments and emission permits. We argue that this new system is an effective and realistic way to move forward on a sustainable regime for climate change policy.

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Publisher Info
Paper provided by Australian National University, Economics and Environment Network in its series Economics and Environment Network Working Papers with number 0003.

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Length: 14 pages
Date of creation: Jun 2000
Date of revision:
Handle: RePEc:anu:eenwps:0003

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Web page: http://een.anu.edu.au/

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Related research
Keywords: climate change; policy; emission permits;

Find related papers by JEL classification:
Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
O20 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - General
Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

References listed on IDEAS
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  1. Warwick J. McKibbin & Peter J. Wilcoxen, 1997. "A Better Way to Slow Global Climate Change," Economics and Environment Network Working Papers 9702, Australian National University, Economics and Environment Network. [Downloadable!]
  2. Warwick J. McKibbin & Peter J. Wilcoxen, 1999. "Permit Trading Under the Kyoto Protocol and Beyond," Economics and Environment Network Working Papers 9902, Australian National University, Economics and Environment Network. [Downloadable!]
  3. McKibbin, Warwick J. & Wilcoxen, Peter J., 1998. "The theoretical and empirical structure of the G-Cubed model," Economic Modelling, Elsevier, vol. 16(1), pages 123-148, January. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Erwin L. Corong, 2008. "Tariff Reduction, Carbon Emissions and Poverty: An Economy-Wide Assessment for the Philippines," EEPSEA Research Report rr2008012, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jan 2008. [Downloadable!]
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This page was last updated on 2009-12-11.

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