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IIGHGINT: A generalization to the modified GHG intensity universal indicator toward a production/consumption insensitive border carbon tax

Listed author(s):
  • Reza Farrahi Moghaddam
  • Fereydoun Farrahi Moghaddam
  • Mohamed Cheriet

A global agreement on how to reduce and cap human footprint, especially their GHG emissions, is very unlikely in near future. At the same time, bilateral agreements would be inefficient because of their neural and balanced nature. Therefore, unilateral actions would have attracted attention as a practical option. However, any unilateral action would most likely fail if it is not fair and also if it is not consistent with the world trade organization's (WTO's) rules, considering highly heterogeneity of the global economy. The modified GHG intensity (MGHGINT) indicator, hereafter called Inequality-adjusted Production-based GHGINT (IPGHGINT), was put forward to address this need in the form of a universal indicator applicable to every region regardless of its economic and social status. Nonetheless, the original MGHGINT indicator ignores hidden consumption-related emissions, and therefore it could be unfair to some production-oriented regions in the current bipolar production/consumption world. Here, we propose two generalizations, called Inequality-adjusted Consumption-based GHGINT (ICGHGINT) and Inequality-adjusted Production/Consumption-Insensitive GHGINT (IIGHGINT), to the IPGHGINT in order to combine both production and consumption emissions in a unified and balanced manner. The impact of this generalizations on the associated border carbon tax rates is evaluated in order to validate their practicality.

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Paper provided by in its series Papers with number 1401.0301.

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Date of creation: Jan 2014
Date of revision: Apr 2014
Handle: RePEc:arx:papers:1401.0301
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  1. 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).
  2. Farrahi Moghaddam, Reza & Farrahi Moghaddam, Fereydoun & Cheriet, Mohamed, 2013. "A modified GHG intensity indicator: Toward a sustainable global economy based on a carbon border tax and emissions trading," Energy Policy, Elsevier, vol. 57(C), pages 363-380.
  3. 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.
  4. Peters, Glen P., 2008. "From production-based to consumption-based national emission inventories," Ecological Economics, Elsevier, vol. 65(1), pages 13-23, March.
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