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Efficiency and Distribution in Greenhouse Negotiations

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  • Eyckmans, Johan
  • Proost, Stef
  • Schokkaert, Erik

Abstract

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

Suggested Citation

  • Eyckmans, Johan & Proost, Stef & Schokkaert, Erik, 1993. "Efficiency and Distribution in Greenhouse Negotiations," Kyklos, Wiley Blackwell, vol. 46(3), pages 363-397.
  • Handle: RePEc:bla:kyklos:v:46:y:1993:i:3:p:363-97
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    Cited by:

    1. Adam Rose & Brandt Stevens, 1998. "A Dynamic Analysis of Fairness in Global Warming Policy: Kyoto, Buenos Aires, and Beyond," Journal of Applied Economics, Universidad del CEMA, vol. 1, pages 329-362, November.
    2. Eyckmans, Johan & Kverndokk, Snorre, 2010. "Moral concerns on tradable pollution permits in international environmental agreements," Ecological Economics, Elsevier, vol. 69(9), pages 1814-1823, July.
    3. MacKenzie, Ian A. & Hanley, Nick & Kornienko, Tatiana, 2009. "Using contests to allocate pollution rights," Energy Policy, Elsevier, vol. 37(7), pages 2798-2806, July.
    4. Groot, Loek, 2010. "Carbon Lorenz curves," Resource and Energy Economics, Elsevier, vol. 32(1), pages 45-64, January.
    5. repec:spr:masfgc:v:23:y:2018:i:5:d:10.1007_s11027-017-9758-8 is not listed on IDEAS
    6. Schmidt, Holger, 1995. "Verteilungseffekte im Klimaschutz-ProzeƟ," Discussion Papers in Development Economics 18, Justus Liebig University Giessen, Institute for Development Economics.
    7. Kohn, Robert E., 2001. "Unilateral transfer of abatement capital," Resource and Energy Economics, Elsevier, vol. 23(2), pages 85-95, April.
    8. Manne, Alan & Mendelsohn, Robert & Richels, Richard, 1995. "MERGE : A model for evaluating regional and global effects of GHG reduction policies," Energy Policy, Elsevier, vol. 23(1), pages 17-34, January.
    9. Stephen P. A. Brown, 1998. "Global warming policy: some economic implications," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q IV, pages 26-35.
    10. Kverndokk, Snorre & Rose, Adam, 2008. "Equity and Justice in Global Warming Policy," International Review of Environmental and Resource Economics, now publishers, vol. 2(2), pages 135-176, October.
    11. Anthoff, David, 2009. "Optimal Global Dynamic Carbon Taxation," Papers WP278, Economic and Social Research Institute (ESRI).
    12. Welsch, Heinz, 1995. "Incentives for forty-five countries to join various forms of carbon reduction agreements," Resource and Energy Economics, Elsevier, vol. 17(3), pages 213-237, November.
    13. Fankhauser, Samuel & Kverndokk, Snorre, 1996. "The global warming game -- Simulations of a CO2-reduction agreement," Resource and Energy Economics, Elsevier, vol. 18(1), pages 83-102, March.
    14. Shiell, Leslie, 2003. "Descriptive, prescriptive and second-best approaches to the control of global greenhouse gas emissions," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1431-1452, August.
    15. Gjerde, Jon & Grepperud, Sverre & Kverndokk, Snorre, 1999. "Optimal climate policy under the possibility of a catastrophe," Resource and Energy Economics, Elsevier, vol. 21(3-4), pages 289-317, August.
    16. Michael Hoel & Sverre A.C. Kittelsen & Snorre Kverndokk, 2015. "Pareto Improving Climate Policies: Distributing the Benefits across Generations and Regions," CESifo Working Paper Series 5487, CESifo Group Munich.
    17. Stephen P.A. Brown & Hillard G. Huntington, 1998. "Some implications of increased cooperation in world oil conservation," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q II, pages 2-9.
    18. Adam Rose & Brandt Stevens & Jae Edmonds & Marshall Wise, 1998. "International Equity and Differentiation in Global Warming Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(1), pages 25-51, July.
    19. Narita, Daiju & Tol, Richard S. J. & Anthoff, David, 2009. "International Climate Policy and Regional Welfare Weights," Papers WP332, Economic and Social Research Institute (ESRI).

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