A Voting Architecture for the Governance of Free-Driver Externalities, with Application to Geoengineering
Climate change is a global "free rider" problem because significant abatement of greenhouse gases is an expensive public good requiring international cooperation to apportion compliance among states. But it is also a global "free driver" problem because geoengineering the stratosphere with reflective particles to block incoming solar radiation is so cheap that it could essentially be undertaken unilaterally by one state perceiving itself to be in peril. This paper develops the main features of a "free driver" externality in a simple model based on the asymmetric consequences of type-I and type-II errors. I propose a social-choice decision architecture based on the solution concept of a supermajority voting rule and derive its basic properties. In the model this supermajority voting rule attains the socially optimal cooperative solution, which is a new theoretical result around which the paper is built.
|Date of creation:||Dec 2012|
|Date of revision:|
|Publication status:||published as A Voting Architecture for the Governance of Free-Driver Externalities, with Application to Geoengineering† Martin L. Weitzman Article first published online: 14 JUL 2015 DOI: 10.1111/sjoe.12120 © The editors of The Scandinavian Journal of Economics 2015. Issue Cover image for Vol. 117 Issue 3 The Scandinavian Journal of Economics Early View (Online Version of Record published before inclusion in an issue)|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
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.:
- Moreno-Cruz, Juan B., 2015. "Mitigation and the geoengineering threat," Resource and Energy Economics, Elsevier, vol. 41(C), pages 248-263.
- repec:cup:cbooks:9780511771576 is not listed on IDEAS
- Marlos Goes & Nancy Tuana & Klaus Keller, 2011. "The economics (or lack thereof) of aerosol geoengineering," Climatic Change, Springer, vol. 109(3), pages 719-744, December.
- David G. Victor, 2008. "On the regulation of geoengineering," Oxford Review of Economic Policy, Oxford University Press, vol. 24(2), pages 322-336, Summer.
- Moulin,Hervi, 1991.
"Axioms of Cooperative Decision Making,"
Cambridge University Press, number 9780521424585, june. pag.
- Easley,David & Kleinberg,Jon, 2010. "Networks, Crowds, and Markets," Cambridge Books, Cambridge University Press, number 9780521195331, june. pag.
- Bergstrom, Ted C, 1979. " When Does Majority Rule Supply Public Goods Efficiently?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 81(2), pages 216-26.
- Scott Barrett, 2008. "The Incredible Economics of Geoengineering," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 39(1), pages 45-54, January.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:18622. 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: ()
If references are entirely missing, you can add them using this form.