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The Paris Agreement and the "free rider"

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  • Christian de Perthuis

Abstract

With the announcement on 1 June 2017 of the withdrawal of the United States from the Paris Agreement, Donald Trump acted in accordance with his strategy of support for fossil energies. The withdrawal in no way facilitates the reorientation of federal energy policy, which will come up against many domestic barriers and economic laws. In the medium term, the risk is that through a contagion effect, other major fossil energy producers will turn away from the agreement, thereby increasing the number of free riders. On the other hand, this withdrawal could be the catalyst for renewed solidarity among the countries remaining in the agreement, leading variously to a rapid strengthening of monitoring and reporting rules, particularly in emerging countries; the extension of carbon pricing, promoted perhaps by a reinvigorated Europe determined to put an end to the disintegration of its CO2 trading system; and an increased financial effort to offset the likely drying up of US contributions. A paradox of history: this new American turnaround could possibly result in the correction of the weaknesses of an agreement based too exclusively on reliance on mutual trust and the goodwill of its parties.

Suggested Citation

  • Christian de Perthuis, 2016. "The Paris Agreement and the "free rider"," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2016(3), pages 31-44.
    • Handle: RePEc:fan:efeefe:v:html10.3280/efe2016-003003
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    References listed on IDEAS

    as
    1. de Perthuis, Christian & Trotignon, Raphael, 2014. "Governance of CO2 markets: Lessons from the EU ETS," Energy Policy, Elsevier, vol. 75(C), pages 100-106.
    2. repec:dau:papers:123456789/13539 is not listed on IDEAS
    3. Martin L. Weitzman, 2015. "Internalizing the Climate Externality: Can a Uniform Price Commitment Help?," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    4. Christian Gollier and Jean Tirole, 2015. "Negotiating effective institutions against climate change," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
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    More about this item

    JEL classification:

    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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