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Life After Kyoto: Alternative Approaches to Global Warming

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William Nordhaus

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Abstract

This study reviews different approaches to the political and economic control of global public goods like global warming. It compares quantity-oriented control mechanisms like the Kyoto Protocol with price-type control mechanisms such as internationally harmonized carbon taxes. The pros and cons of the two approaches are compared, focusing on such issues as performance under conditions of uncertainty, volatility of the induced carbon prices, the excess burden of taxation and regulation, potential for corruption and accounting finagling, and ease of implementation. It concludes that, although virtually all discussions about economic global public goods have analyzed quantitative approaches, price-type approaches are likely to be more effective and more efficient.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11889.

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Date of creation: Dec 2005
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Handle: RePEc:nbr:nberwo:11889

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H2 - Public Economics - - Taxation, Subsidies, and Revenue
Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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This page was last updated on 2009-12-5.

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