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An Equitable, Efficient and Implementable Scheme to Control Global Carbon Dioxide Emissions

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Author Info
Arthur Caplan
Emilson Silva

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Abstract

We design an international scheme to control global carbon dioxide emissions in which autonomous developed and developing regions choose their own carbon dioxide emissions in anticipation of interregional resource transfers to be implemented by an international agency. This agency’s objective function obeys a proportional equity principle, which preserves the status-quo relative ranking of regional welfare levels. We show that it is individually rational for each region to participate in our proposed international scheme and that regional environmental authorities choose policies that internalize the global environmental externalities. These results are especially noteworthy in light of the call for international transfers from developed to developing countries in the Kyoto Protocol.

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File URL: ftp://repec.bus.usu.edu/RePEc/usu/pdf/ERI2002-22.pdf
File Format: application/pdf
File Function: First version, 2002
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Publisher Info
Paper provided by Utah State University, Department of Economics in its series Working Papers with number 2002-22.

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Length: 18 pages
Date of creation: Dec 2002
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Handle: RePEc:usu:wpaper:2002-22

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Find related papers by JEL classification:
D62 - Microeconomics - - Welfare Economics - - - Externalities
D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

References listed on IDEAS
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. Michael Finus, 2004. "Modesty Pays: Sometimes!," Working Papers 2004.68, Fondazione Eni Enrico Mattei. [Downloadable!]
  2. Nagase, Yoko & Silva, Emilson C. D., 2000. "Optimal Control of Acid Rain in a Federation with Decentralized Leadership and Information," Journal of Environmental Economics and Management, Elsevier, vol. 40(2), pages 164-180, September. [Downloadable!] (restricted)
  3. Michael Finus & Bianca Rundshagen, 2005. "Participation in International Environmental Agreements: The Role of Timing and Regulation," Working Papers 2005.45, Fondazione Eni Enrico Mattei. [Downloadable!]
  4. Silva, Emilson C. D., 1997. "Decentralized and Efficient Control of Transboundary Pollution in Federal Systems," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 95-108, January. [Downloadable!] (restricted)
  5. Silva, Emilson C. D. & Caplan, Arthur J., 1997. "Transboundary Pollution Control in Federal Systems," Journal of Environmental Economics and Management, Elsevier, vol. 34(2), pages 173-186, October. [Downloadable!] (restricted)
  6. Pierre-Andre Chiappori & Ivan Werning, 2002. "Comment on "Rotten Kids, Purity, and Perfection"," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 475-504, April. [Downloadable!] (restricted)
  7. Arthur J. Caplan & Richard C. Cornes & Emilson C. D. Silva, 2003. "An ideal Kyoto protocol: emissions trading, redistributive transfers and global participation," Oxford Economic Papers, Oxford University Press, vol. 55(2), pages 216-234, April.
  8. Boadway, Robin, 1982. "On the Method of Taxation and the Provision of Local Public Goods: Comment," American Economic Review, American Economic Association, vol. 72(4), pages 846-51, September. [Downloadable!] (restricted)
  9. Wellisch, Dietmar, 1994. "Interregional spillovers in the presence of perfect and imperfect household mobility," Journal of Public Economics, Elsevier, vol. 55(2), pages 167-184, October. [Downloadable!] (restricted)
  10. Michael Hoel & Kerstin Schneider, 1997. "Incentives to participate in an international environmental agreement," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(2), pages 153-170, March. [Downloadable!] (restricted)
  11. Chander, Parkash & Tulkens, Henry, 1994. "The Core of an Economy With Multilateral Environmental Externalities," Working Papers 886, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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  12. Carraro, Carlo & Siniscalco, Domenico, 1993. "Strategies for the international protection of the environment," Journal of Public Economics, Elsevier, vol. 52(3), pages 309-328, October. [Downloadable!] (restricted)
    Other versions:
  13. Caplan, Arthur J. & Silva, Emilson C. D., 1999. "Federal Acid Rain Games," Journal of Urban Economics, Elsevier, vol. 46(1), pages 25-52, July. [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. Yukihiro Nishimura, 2008. "A Lindahl Solution to International Emissions Trading," Working Papers 1177, Queen's University, Department of Economics. [Downloadable!]
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