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A modified GHG intensity indicator: Toward a sustainable global economy based on a carbon border tax and emissions trading

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  • Farrahi Moghaddam, Reza
  • Farrahi Moghaddam, Fereydoun
  • Cheriet, Mohamed

Abstract

It will be difficult to gain the agreement of all the actors on any proposal for climate change management, if universality and fairness are not considered. In this work, a universal measure of emissions to be applied at the international level is proposed, based on a modification of the Greenhouse Gas Intensity (GHG-INT) measure. It is hoped that the generality and low administrative cost of this measure, which we call the Modified Greenhouse Gas Intensity measure (MGHG-INT), will eliminate any need to classify nations. The core of the MGHG-INT is what we call the IHDI-adjusted Gross Domestic Product (IDHIGDP), based on the Inequality-adjusted Human Development Index (IHDI). The IDHIGDP makes it possible to propose universal measures, such as MGHG-INT. We also propose a carbon border tax applicable at national borders, based on MGHG-INT and IDHIGDP. This carbon tax is supported by a proposed global Emissions Trading System (ETS). The proposed carbon tax is analyzed in a short-term scenario, where it is shown that it can result in a significant reduction in global emissions while keeping the economy growing at a positive rate. In addition to annual GHG emissions, cumulative GHG emissions over two decades are considered with almost the same results.

Suggested Citation

  • Farrahi Moghaddam, Reza & Farrahi Moghaddam, Fereydoun & Cheriet, Mohamed, 2013. "A modified GHG intensity indicator: Toward a sustainable global economy based on a carbon border tax and emissions trading," Energy Policy, Elsevier, vol. 57(C), pages 363-380.
  • Handle: RePEc:eee:enepol:v:57:y:2013:i:c:p:363-380
    DOI: 10.1016/j.enpol.2013.02.012
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    Citations

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    Cited by:

    1. Reza Farrahi Moghaddam & Fereydoun Farrahi Moghaddam & Mohamed Cheriet, 2014. "A Multi-Entity Input Output (MEIO) Approach to Sustainability - Water-Energy-GHG (WEG) Footprint Statements in Use Cases from Auto and Telco Industries," Papers 1404.6227, arXiv.org, revised Apr 2014.
    2. Wang, Jianjun & Li, Li, 2016. "Sustainable energy development scenario forecasting and energy saving policy analysis of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 718-724.
    3. Tang, Ling & Wu, Jiaqian & Yu, Lean & Bao, Qin, 2015. "Carbon emissions trading scheme exploration in China: A multi-agent-based model," Energy Policy, Elsevier, vol. 81(C), pages 152-169.
    4. Jiang, Jingjing & Xie, Dejun & Ye, Bin & Shen, Bo & Chen, Zhanming, 2016. "Research on China’s cap-and-trade carbon emission trading scheme: Overview and outlook," Applied Energy, Elsevier, vol. 178(C), pages 902-917.
    5. repec:gam:jsusta:v:9:y:2017:i:7:p:1247-:d:104856 is not listed on IDEAS
    6. repec:eee:rensus:v:75:y:2017:i:c:p:855-867 is not listed on IDEAS
    7. Tsai, Miao-Shan & Chang, Ssu-Li, 2015. "Taiwan’s 2050 low carbon development roadmap: An evaluation with the MARKAL model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 178-191.
    8. Reza Farrahi Moghaddam & Fereydoun Farrahi Moghaddam & Mohamed Cheriet, 2014. "IIGHGINT: A generalization to the modified GHG intensity universal indicator toward a production/consumption insensitive border carbon tax," Papers 1401.0301, arXiv.org, revised Apr 2014.

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