Efficiency and Distribution in Greenhouse Negotiations
The authors analyze the international aspects of the greenhouse problem. The equity versus efficiency trade-off is examined by reducing the set of instruments to the allocation of abatement efforts over countries without the possibility of side payments. The traditional cost-effective allocation of abatement efforts is no longer necessarily optimal. The trade-off is illustrated empirically by combining the available cost and benefit estimates in a simplified two-period model with twelve regions in the world. In a second application, the authors follow an inverse optimum approach and compute the power weights implicit in actual agreements. Copyright 1993 by WWZ and Helbing & Lichtenhahn Verlag AG
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Volume (Year): 46 (1993)
Issue (Month): 3 ()
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