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Allocating $$\hbox {CO}_2$$ CO 2 emissions: a dynamic claims problem

Author

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  • Eun Jeong Heo

    (University of Seoul)

  • Jinhyuk Lee

    (Korea University)

Abstract

We analyze carbon dioxide emissions in a dynamic framework of conflicting claims problem (O’Neill in Math Soc Sci 2:345–371, 1982). We consider five allocation rules of the standard claims problem, taking a target carbon dioxide budget as an endowment to divide and the business-as-usual emissions of countries as a claims vector. The claims problem of one period is linked to another through economic growth, as an emission allocation affects the countries’ national income, which then affects their claims of the next period. We provide a numerical analysis of this framework to illustrate how an emission allocation influences economic growth cumulatively. By comparing the growth paths, we evaluate the allocation rules by means of convergence, equality, and efficiency criteria.

Suggested Citation

  • Eun Jeong Heo & Jinhyuk Lee, 2023. "Allocating $$\hbox {CO}_2$$ CO 2 emissions: a dynamic claims problem," Review of Economic Design, Springer;Society for Economic Design, vol. 27(1), pages 163-186, February.
    • Handle: RePEc:spr:reecde:v:27:y:2023:i:1:d:10.1007_s10058-021-00286-z
    DOI: 10.1007/s10058-021-00286-z
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    References listed on IDEAS

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    More about this item

    Keywords

    $$hbox {CO}_2$$ CO 2 emissions; Claims problem; Climate change policy; GDP per capita; Growth;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H4 - Public Economics - - Publicly Provided Goods
    • H8 - Public Economics - - Miscellaneous Issues
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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