A Polycentric Approach For Coping With Climate Change
This paper proposes an alternative approach to addressing the complex problems of climate change caused by greenhouse gas emissions. The author, who won the 2009 Nobel Prize in Economic Sciences, argues that single policies adopted only at a global scale are unlikely to generate sufficient trust among citizens and firms so that collective action can take place in a comprehensive and transparent manner that will effectively reduce global warming. Furthermore, simply recommending a single governmental unit to solve global collective action problems is inherently weak because of free-rider problems. For example, the Carbon Development Mechanism (CDM) can be `gamed' in ways that hike up prices of natural resources and in some cases can lead to further natural resource exploitation. Some flaws are also noticeable in the Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD) program. Both the CDM and REDD are vulnerable to the free-rider problem. As an alternative, the paper proposes a polycentric approach at various levels with active oversight of local, regional, and national stakeholders. Efforts to reduce global greenhouse gas emissions are a classic collective action problem that is best addressed at multiple scales and levels. Given the slowness and conflict involved in achieving a global solution to climate change, recognizing the potential for building a more effective way of reducing green house gas emissions at multiple levels is an important step forward. A polycentric approach has the main advantage of encouraging experimental efforts at multiple levels, leading to the development of methods for assessing the benefits and costs of particular strategies adopted in one type of ecosystem and compared to results obtained in other ecosystems. Building a strong commitment to find ways of reducing individual emissions is an important element for coping with this problem, and having others also take responsibility can be more effectively undertaken in small- to medium-scale governance units that are linked together through information networks and monitoring at all levels. This paper was prepared as a background paper for the 2010 World Development Report on Climate Change.
|Date of creation:||2008|
|Publication status:||Published in Annals of Economics and Finance, May 2014, pages 71-108|
|Contact details of provider:|| Web page: http://cema.cufe.edu.cn/|
More information through EDIRC
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.:
- Ernst Fehr & Simon Gächter, 2000.
"Fairness and Retaliation: The Economics of Reciprocity,"
Journal of Economic Perspectives,
American Economic Association, vol. 14(3), pages 159-181, Summer.
- Ernst Fehr & Simon Gaechter, "undated". "Fairness and Retaliation: The Economics of Reciprocitys," IEW - Working Papers 040, Institute for Empirical Research in Economics - University of Zurich.
- Ernst Fehr & Simon Gaechter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," CESifo Working Paper Series 336, CESifo Group Munich.
- repec:cup:apsrev:v:87:y:1993:i:03:p:702-713_10 is not listed on IDEAS
- Edella Schlager & William Blomquist & Shui Yan Tang, 1994. "Mobile Flows, Storage, and Self-Organized Institutions for Governing Common-Pool Resources," Land Economics, University of Wisconsin Press, vol. 70(3), pages 294-317.
- Fehr, Ernst & Leibbrandt, Andreas, 2008. "Cooperativeness and Impatience in the Tragedy of the Commons," IZA Discussion Papers 3625, Institute for the Study of Labor (IZA).
- Ernst Fehr & Andreas Leibbrandt, 2008. "Cooperativeness and Impatience in the Tragedy of the Commons," IEW - Working Papers 378, Institute for Empirical Research in Economics - University of Zurich.
- Stavins, Robert, 1997. "Policy Instruments for Climate Change: How Can National Governments Address a Global Problem?," Discussion Papers dp-97-11, Resources For the Future.
- Herman, Stewart W. & Schaefer, Arthur Gross, 1997. "Introduction," Business Ethics Quarterly, Cambridge University Press, vol. 7(02), pages 1-3, March.
- Edella Schlager & Elinor Ostrom, 1992. "Property-Rights Regimes and Natural Resources: A Conceptual Analysis," Land Economics, University of Wisconsin Press, vol. 68(3), pages 249-262.
- Corbera, Esteve & Brown, Katrina, 2008. "Building Institutions to Trade Ecosystem Services: Marketing Forest Carbon in Mexico," World Development, Elsevier, vol. 36(10), pages 1956-1979, October.
- Cox, James C. & Friedman, Daniel & Gjerstad, Steven, 2007. "A tractable model of reciprocity and fairness," Games and Economic Behavior, Elsevier, vol. 59(1), pages 17-45, April.
- James Cox & Daniel Friedman & Steven Gjerstad, 2004. "A Tractable Model of Reciprocity and Fairness," Experimental 0406001, EconWPA.
- James C. Cox & Daniel Friedman & Steven Gjerstad, 2006. "A Tractable Model of Reciprocity and Fairness," Experimental Economics Center Working Paper Series 2006-05, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
- Cox, J. & Friedman, D. & Gjerstad, S., 2006. "A Trackable Model of Reciprocity and Fairness," Purdue University Economics Working Papers 1181, Purdue University, Department of Economics.
- Larry Lohmann, 2008. "Carbon Trading, Climate Justice and the Production of Ignorance: Ten examples," Development, Palgrave Macmillan;Society for International Deveopment, vol. 51(3), pages 359-365, September.
- Pat Lauderdale & Richard Harris, 2008. "Introduction," Journal of Developing Societies, , vol. 24(1), pages 1-11, March. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:cuf:wpaper:578. 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: (Qiang Gao)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.