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Evolution of the Global Distribution of Carbon Dioxide: A Finite Mixture Analysis

  • Michele Battisti

    (Department of Law, Politics and Society, University of Palermo)

  • Michael S. Delgado

    (Department of Agricultural Economics, Purdue University)

  • Christopher F. Parmeter

    (Department of Economics, University of Miami)

Economists and environmental policymakers have recently begun advocating a bottom-up approach to climate change mitigation, focusing on reduction targets for groups of nations, rather than large scale global policies. We advance this discussion by taking a quantitative perspective, focusing on econometric identification of groups of countries that have statistically similar distributions of carbon emissions using a broad range of finite mixture models. Nearly all of our results yield a consistent pattern: after 1980, there are two distinct emissions distributions, and that these distributions continue to evolve over time. We provide a rigorous analysis of these distributional differences along several important dimensions: polarization, mobility, and volatility. We discuss how this robust quantitative evidence may aid policymakers in forging a heterogeneous carbon abatement policy.

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File URL: http://bus.miami.edu/_assets/files/repec/WP2103-10.pdf
File Function: First version, 2013
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Paper provided by University of Miami, Department of Economics in its series Working Papers with number 2013-10.

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Length: 39 pages
Date of creation: 08 May 2013
Date of revision:
Publication status: Forthcoming (Under Review)
Handle: RePEc:mia:wpaper:2013-10
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