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Compensations and contributions under an international carbon treaty


  • Seidman, Laurence
  • Lewis, Kenneth


This paper provides a numerical illustration of how an international carbon treaty might work. The simulations in this paper using 2004 data on carbon emissions and per capita GDP from 178 countries suggest that high-income countries might be much better off collectively compensating low-income countries through an international treaty to help reduce carbon emissions rather than reducing carbon emissions without their help.

Suggested Citation

  • Seidman, Laurence & Lewis, Kenneth, 2009. "Compensations and contributions under an international carbon treaty," Journal of Policy Modeling, Elsevier, vol. 31(3), pages 341-350, May.
  • Handle: RePEc:eee:jpolmo:v:31:y:2009:i:3:p:341-350

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    References listed on IDEAS

    1. Frankel, Jeffrey, 2007. "Formulas for Quantitative Emission Targets," Working Paper Series rwp07-011, Harvard University, John F. Kennedy School of Government.
    2. Sheila M. Olmstead & Robert N. Stavins, 2006. "An International Policy Architecture for the Post-Kyoto Era," American Economic Review, American Economic Association, vol. 96(2), pages 35-38, May.
    3. Zhang, ZhongXiang, 2004. "Meeting the Kyoto targets: the importance of developing country participation," Journal of Policy Modeling, Elsevier, vol. 26(1), pages 3-19, January.
    4. Lawrence H. Goulder, 1992. "Carbon Tax Design and U.S. Industry Performance," NBER Chapters,in: Tax Policy and the Economy, Volume 6, pages 59-104 National Bureau of Economic Research, Inc.
    5. Joseph E. Aldy & Scott Barrett & Robert N. Stavins, 2003. "Thirteen plus one: a comparison of global climate policy architectures," Climate Policy, Taylor & Francis Journals, vol. 3(4), pages 373-397, December.
    6. repec:reg:rpubli:353 is not listed on IDEAS
    7. Liang, Qiao-Mei & Fan, Ying & Wei, Yi-Ming, 2007. "Carbon taxation policy in China: How to protect energy- and trade-intensive sectors?," Journal of Policy Modeling, Elsevier, vol. 29(2), pages 311-333.
    8. Scott Barrett & Robert Stavins, 2003. "Increasing Participation and Compliance in International Climate Change Agreements," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 3(4), pages 349-376, December.
    9. William A. Pizer, 2006. "The Evolution of a Global Climate Change Agreement," American Economic Review, American Economic Association, vol. 96(2), pages 26-30, May.
    10. Stavins, Robert, 2007. "A U.S. Cap-and-Trade System to Address Global Climate Change," Working Paper Series rwp07-052, Harvard University, John F. Kennedy School of Government.
    11. William D. Nordhaus, 2006. "After Kyoto: Alternative Mechanisms to Control Global Warming," American Economic Review, American Economic Association, vol. 96(2), pages 31-34, May.
    12. James M. Poterba, 1991. "Tax Policy to Combat Global Warming: On Designing a Carbon Tax," NBER Working Papers 3649, National Bureau of Economic Research, Inc.
    13. Pizer, William A., 2002. "Combining price and quantity controls to mitigate global climate change," Journal of Public Economics, Elsevier, vol. 85(3), pages 409-434, September.
    14. Onishi, Akira, 2007. "The impact of CO2 emissions on the world economy: Policy simulations of FUGI global model," Journal of Policy Modeling, Elsevier, vol. 29(6), pages 797-819.
    15. Cooper, Richard N, 2000. "International Approaches to Global Climate Change," World Bank Research Observer, World Bank Group, vol. 15(2), pages 145-172, August.
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    Cited by:

    1. Jeffrey A. Frankel, 2009. "An Elaborated Global Climate Policy Architecture: Specific Formulas and Emission Targets for All Countries in All Decades," NBER Working Papers 14876, National Bureau of Economic Research, Inc.
    2. Valentina Bosetti & Jeffrey Frankel, 2014. "Sustainable Cooperation In Global Climate Policy: Specific Formulas And Emission Targets," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 1-34.
    3. Valentina Bosetti & Jeffrey Frankel, 2011. "Sustainable Cooperation in Global Climate Policy: Specific Formulas and Emission Targets to Build on Copenhagen and Cancun," Working Papers 2011.66, Fondazione Eni Enrico Mattei.
    4. Frankel, Jeffrey, 2008. "Global Environmental Policy and Global Trade Policy," Working Paper Series rwp08-058, Harvard University, John F. Kennedy School of Government.
    5. Frankel, Jeffrey A., 2009. "Environmental Effects of International Trade," Scholarly Articles 4481652, Harvard Kennedy School of Government.

    More about this item


    Carbon treaty Carbon tax Carbon permits Compensation Contributions;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies


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