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Hourglass models of world-wide problems such as climate change

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  • Arie ten Cate

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

A simple model of “hourglass” problems is presented. For such problems, the benefit of a national policy measure is propagated to all countries through one single world-wide variable. The prime example is the effect of the reduction of CO 2 emission on the world climate. Five optimal solutions are given, for various situations and points of view, followed by a comparison with the outcome of permit trading.

Suggested Citation

  • Arie ten Cate, 2010. "Hourglass models of world-wide problems such as climate change," CPB Memorandum 238, CPB Netherlands Bureau for Economic Policy Analysis.
  • Handle: RePEc:cpb:memodm:238
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    File URL: http://www.cpb.nl/sites/default/files/publicaties/download/memo238.pdf
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    References listed on IDEAS

    as
    1. Hahn, Robert W., 1982. "Market Power and Transferable Property Rights," Working Papers 402, California Institute of Technology, Division of the Humanities and Social Sciences.
    2. Wirl, Franz, 2009. "Oligopoly meets oligopsony: The case of permits," Journal of Environmental Economics and Management, Elsevier, vol. 58(3), pages 329-337, November.
    3. Anthoff, David & Hepburn, Cameron & Tol, Richard S.J., 2009. "Equity weighting and the marginal damage costs of climate change," Ecological Economics, Elsevier, vol. 68(3), pages 836-849, January.
    4. Mulder, Machiel & ten Cate, Arie & Zwart, Gijsbert Zwart, 2007. "The economics of promoting security of energy supply," EIB Papers 8/2007, European Investment Bank, Economics Department.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Arie ten Cate, 2012. "The socially optimal energy transition in a residential neighbourhood in the Netherlands," CPB Discussion Paper 222, CPB Netherlands Bureau for Economic Policy Analysis.

    More about this item

    JEL classification:

    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • 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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