A Modified GHG Intensity Indicator: Toward a Sustainable Global Economy based on a Carbon Border Tax and Emissions Trading
It will be difficult to gain the agreement of all the actors on any proposal for climate change management, if universality and fairness are not considered. In this work, a universal measure of emissions to be applied at the international level is proposed, based on a modification of the Greenhouse Gas Intensity (GHG-INT) measure. It is hoped that the generality and low administrative cost of this measure, which we call the Modified Greenhouse Gas Intensity measure (MGHG-INT), will eliminate any need to classify nations. The core of the MGHG-INT is what we call the IHDI-adjusted Gross Domestic Product (IDHIGDP), based on the Inequality-adjusted Human Development Index (IHDI). The IDHIGDP makes it possible to propose universal measures, such as MGHG-INT. We also propose a carbon border tax applicable at national borders, based on MGHG-INT and IDHIGDP. This carbon tax is supported by a proposed global Emissions Trading System (ETS). The proposed carbon tax is analyzed in a short-term scenario, where it is shown that it can result in significant reduction in global emissions while keeping the economy growing at a positive rate. In addition to annual GHG emissions, cumulative GHG emissions over two decades are considered with almost the same results.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:dau:papers:123456789/7348 is not listed on IDEAS
- Sheila M. Olmstead & Robert N. Stavins, 2012.
"Three Key Elements of a Post-2012 International Climate Policy Architecture,"
Review of Environmental Economics and Policy,
Association of Environmental and Resource Economists, vol. 6(1), pages 65-85.
- Olmstead, Sheila M. & Stavins, Robert N., 2010. "Three Key Elements of Post-2012 International Climate Policy Architecture," Discussion Papers dp-10-34, Resources For the Future.
- Olmstead, Sheila M. & Stavins, Robert Norman, 2010. "Three Key Elements of Post-2012 International Climate Policy Architecture," Scholarly Articles 4448992, Harvard Kennedy School of Government.
- Sheila M. Olmstead & Robert N. Stavins, 2010. "Three Key Elements of Post-2012 International Climate Policy Architecture," Working Papers 2010.97, Fondazione Eni Enrico Mattei.
- Olmstead, Sheila M. & Stavins, Robert N., 2010. "Three Key Elements of Post-2012 International Climate Policy Architecture," Working Paper Series rwp10-030, Harvard University, John F. Kennedy School of Government.
- Mattoo, Aaditya & Subramanian, Arvind & van der Mensbrugghe, Dominique & He, Jianwu, 2009.
"Reconciling climate change and trade policy,"
Policy Research Working Paper Series
5123, The World Bank.
- Aaditya Mattoo & Arvind Subramanian & Dominique van der Mensbrugghe & Jianwu He, 2009. "Reconciling Climate Change and Trade Policy," Working Papers 189, Center for Global Development.
- Aaditya Mattoo & Arvind Subramanian & Dominique van der Mensbrugghe & Jianwu He, 2009. "Reconciling Climate Change and Trade Policy," Working Paper Series WP09-15, Peterson Institute for International Economics.
- Weber, Christopher L. & Peters, Glen P. & Guan, Dabo & Hubacek, Klaus, 2008. "The contribution of Chinese exports to climate change," Energy Policy, Elsevier, vol. 36(9), pages 3572-3577, September.
- Jean-Pascal Bassino & Pierre vanderEng, 2010. "Responses Of Economic Systems To Environmental Change: Past Experiences," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 50(1), pages 1-5, 03.
- Weber, Christopher L. & Peters, Glen P., 2009. "Climate change policy and international trade: Policy considerations in the US," Energy Policy, Elsevier, vol. 37(2), pages 432-440, February.
- Sabina Alkire and James Foster, 2010.
"Designing the Inequality-Adjusted Human Development Index (HDI),"
OPHI Working Papers
ophiwp037, Queen Elizabeth House, University of Oxford.
- Sabina Alkire & James Foster, 2010. "Designing the Inequality-Adjusted Human Development Index (IHDI)," Human Development Research Papers (2009 to present) HDRP-2010-28, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
- Jean-Pascal Bassino & Pierre Der van Eng, 2010. "Responses of economic systems to environmental changes: past experiences," Post-Print halshs-00647279, HAL.
- Simon Kuznets, 1934.
"National Income, 1929-1932,"
in: National Income, 1929-1932, pages 1-12
National Bureau of Economic Research, Inc.
- Philippe Crist, 2009. "Greenhouse Gas Emissions Reduction Potential from International Shipping," OECD/ITF Joint Transport Research Centre Discussion Papers 2009/11, OECD Publishing.
- Robert N. Stavins, 1998. "What Can We Learn from the Grand Policy Experiment? Lessons from SO2 Allowance Trading," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 69-88, Summer.
- D. Demailly & Philippe Quirion, 2008.
"European Emission Trading Scheme and competitiveness: A case study on the iron and steel industry,"
- Demailly, Damien & Quirion, Philippe, 2008. "European Emission Trading Scheme and competitiveness: A case study on the iron and steel industry," Energy Economics, Elsevier, vol. 30(4), pages 2009-2027, July.
- Thomas Wiedmann & Richard Wood & Jan Minx & Manfred Lenzen & Dabo Guan & Rocky Harris, 2010. "A Carbon Footprint Time Series Of The Uk - Results From A Multi-Region Input-Output Model," Economic Systems Research, Taylor & Francis Journals, vol. 22(1), pages 19-42.
- Peters, Glen P., 2008. "From production-based to consumption-based national emission inventories," Ecological Economics, Elsevier, vol. 65(1), pages 13-23, March.
- Wang, Xin & Li, Ji Feng & Zhang, Ya Xiong, 2011. "An analysis on the short-term sectoral competitiveness impact of carbon tax in China," Energy Policy, Elsevier, vol. 39(7), pages 4144-4152, July.
- Ian Sheldon, 2011. "Is There Anything New about Border Tax Adjustments and Climate Policy?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(2), pages 553-557.
- Matsuoka, Yuzuru & Kainuma, Mikiko & Morita, Tsuneyuki, 1995. "Scenario analysis of global warming using the Asian Pacific Integrated Model (AIM)," Energy Policy, Elsevier, vol. 23(4-5), pages 357-371.
- Cranston, G.R. & Hammond, G.P., 2010. "North and south: Regional footprints on the transition pathway towards a low carbon, global economy," Applied Energy, Elsevier, vol. 87(9), pages 2945-2951, September.
- Lawn, Philip A., 2003. "A theoretical foundation to support the Index of Sustainable Economic Welfare (ISEW), Genuine Progress Indicator (GPI), and other related indexes," Ecological Economics, Elsevier, vol. 44(1), pages 105-118, February.
- van Asselt, Harro & Brewer, Thomas, 2010. "Addressing competitiveness and leakage concerns in climate policy: An analysis of border adjustment measures in the US and the EU," Energy Policy, Elsevier, vol. 38(1), pages 42-51, January.
- Chen, Z.M. & Chen, G.Q., 2011. "Embodied carbon dioxide emission at supra-national scale: A coalition analysis for G7, BRIC, and the rest of the world," Energy Policy, Elsevier, vol. 39(5), pages 2899-2909, May.
- Monjon, Stéphanie & Quirion, Philippe, 2010.
"How to design a border adjustment for the European Union Emissions Trading System?,"
Elsevier, vol. 38(9), pages 5199-5207, September.
- Stéphanie Monjon & Philippe Quirion, 2010. "How to Design a Border Adjustment for the European Union Emissions Trading System?," Working Papers 2010.36, Fondazione Eni Enrico Mattei.
- S. Monjon & Philippe Quirion, 2010. "How to design a border adjustment for the European Union Emissions Trading System?," Post-Print hal-00719254, HAL.
- Shmelev, Stanislav E. & Rodríguez-Labajos, Beatriz, 2009. "Dynamic multidimensional assessment of sustainability at the macro level: The case of Austria," Ecological Economics, Elsevier, vol. 68(10), pages 2560-2573, August.
- Lars Mathiesen and Ottar Maestad, 2004. "Climate Policy and the Steel Industry: Achieving Global Emission Reductions by an Incomplete Climate Agreement," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 91-114.
- Filippetti, Andrea & Peyrache, Antonio, 2011. "The Patterns of Technological Capabilities of Countries: A Dual Approach using Composite Indicators and Data Envelopment Analysis," World Development, Elsevier, vol. 39(7), pages 1108-1121, July.
- Kuik, Onno & Hofkes, Marjan, 2010. "Border adjustment for European emissions trading: Competitiveness and carbon leakage," Energy Policy, Elsevier, vol. 38(4), pages 1741-1748, April.
When requesting a correction, please mention this item's handle: RePEc:arx:papers:1110.1567. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (arXiv administrators)
If references are entirely missing, you can add them using this form.