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Some Economics of Global Warming

  • Jean Tirole


    (Toulouse School of Economics)

This paper reflects on the economics and politics of an international climate policy agreement. The international community has so far failed to design institutions and a compensation scheme that would lead to an abatement effort commensurate with the IPCC recommendations that it attempts tofollow. The paper first lays out what could be a proper institutional design, minimizing the impact of abatement on the world consumer’s income, and thereby making the fight against climate change more credible. It then sketches a governance mechanism as well as an approach to compensation. Finally, it concludes with a roadmap for the negotiation.

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Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 98 (2008)
Issue (Month): 6 (November-December)
Pages: 9-42

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Handle: RePEc:rpo:ripoec:v:98:y:2008:i:6:p:9-42
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  1. GOLLIER Christian, 2008. "Discounting with fat-tailed economic growth," LERNA Working Papers 08.19.263, LERNA, University of Toulouse.
  2. Hahn, Robert W & Stavins, Robert N, 1992. "Economic Incentives for Environmental Protection: Integrating Theory and Practice," American Economic Review, American Economic Association, vol. 82(2), pages 464-68, May.
  3. repec:cup:cbooks:9780521660839 is not listed on IDEAS
  4. Hahn, Robert W., 2000. "The Impact of Economics on Environmental Policy," Journal of Environmental Economics and Management, Elsevier, vol. 39(3), pages 375-399, May.
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