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Climate Policies, Distributional Effects and Transfers Between Rich and Poor Countries

Author

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  • Kverndokk, Snorre

Abstract

This paper studies the role of equity preferences and distribution in climate policies by presenting mechanisms and results from dynamic North-South models. If policy makers express preferences regarding the distributive outcome of policies, they may adopt climate policies that influence the distribution in their preferred direction. A better distribution of outcomes may result even in the absence of such preferences if there exist strategic reasons for transfers from the rich to the poor countries. We also present results concerning when such transfers do and do not work according to policy makers’ intentions. A transfer that proceeds from the poor to the rich countries is climate migration. This may have distributional consequences and possibly increase the incentives of the rich countries to implement climate policies that mitigate negative distributional effects, even if their main concern is with their own outcomes.

Suggested Citation

  • Kverndokk, Snorre, 2018. "Climate Policies, Distributional Effects and Transfers Between Rich and Poor Countries," International Review of Environmental and Resource Economics, now publishers, vol. 12(2-3), pages 129-176, November.
    • Handle: RePEc:now:jirere:101.00000100
    DOI: 10.1561/101.00000100
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    Citations

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    Cited by:

    1. Antonina Ivanova & Asim Zia & Paiman Ahmad & Mairon Bastos-Lima, 0. "Climate mitigation policies and actions: access and allocation issues," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 0, pages 1-15.
    2. Antonina Ivanova Boncheva, 2022. "Finance for Climate Action: Postcovid-19 Recovery Challenges," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 17(2), pages 1-20, Abril - J.
    3. Lea S. Svenningsen, 2019. "Social preferences for distributive outcomes of climate policy," Climatic Change, Springer, vol. 157(2), pages 319-336, November.
    4. Marian Leimbach & Anastasis Giannousakis, 2019. "Burden sharing of climate change mitigation: global and regional challenges under shared socio-economic pathways," Climatic Change, Springer, vol. 155(2), pages 273-291, July.
    5. Roolfs, Christina & Gaitan, Beatriz & Edenhofer, Ottmar, 2021. "Make or brake — Rich states in voluntary federal emission pricing," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    6. Antonina Ivanova & Asim Zia & Paiman Ahmad & Mairon Bastos-Lima, 2020. "Climate mitigation policies and actions: access and allocation issues," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 20(2), pages 287-301, June.
    7. Marian Leimbach & Nico Bauer, 2022. "Capital markets and the costs of climate policies," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(3), pages 397-420, July.

    More about this item

    Keywords

    Inter- and intragenerational equity; climate finance; migration; North-South models;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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