Curbing emissions through (efficient) carbon liabilities: A note from a climate skeptic's perspective
AbstractWe propose a new climate policy that is efficient, robust, and asks for payments proportional to realized climate damage. In each period, countries are made liable for their share of the responsibility in the current damage. Efficiency follows from countries' anticipations of climate change, hence of future payments. Robustness is achieved thanks to the introduction of a market for carbon liabilities. Rather than being based on the expected discounted sum of future marginal damage (as with a carbon tax or tradable emission permits) our proposal relies only on observed realized damage and on the well-documented emission history of countries.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 46953.
Date of creation: May 2013
Date of revision:
Climate Change; Ex-ante vs ex-post approach; Carbon Liability;
Find related papers by JEL classification:
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-19 (All new papers)
- NEP-ENE-2013-05-19 (Energy Economics)
- NEP-ENV-2013-05-19 (Environmental Economics)
- NEP-RES-2013-05-19 (Resource Economics)
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