Curbing emissions through (efficient) carbon liabilities: A note from a climate skeptic's perspective
We propose a new climate policy that is efficient, robust, and asks for payments proportional to realized climate damage. In each period, countries are made liable for their share of the responsibility in the current damage. Efficiency follows from countries' anticipations of climate change, hence of future payments. Robustness is achieved thanks to the introduction of a market for carbon liabilities. Rather than being based on the expected discounted sum of future marginal damage (as with a carbon tax or tradable emission permits) our proposal relies only on observed realized damage and on the well-documented emission history of countries.
|Date of creation:||May 2013|
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- Étienne Billette de Villemeur & Justin Leroux, 2010.
"Sharing the Cost of Global Warming,"
Cahiers de recherche
- Etienne BILLETTE de VILLEMEUR & Justin Leroux, 2010. "Sharing the Cost of Global Warming," Cahiers de recherche 10-04, HEC Montréal, Institut d'économie appliquée.
- Etienne Billette de Villemeur & Justin Leroux, 2010. "Sharing the Cost of Global Warming," CIRANO Working Papers 2010s-32, CIRANO.
- Leroux, Justin & de Villemeur, Étienne, 2010. "Sharing the Cost of Global Warming," IDEI Working Papers 629, Institut d'Économie Industrielle (IDEI), Toulouse, revised Feb 2011.
- Leroux, Justin & de Villemeur, Étienne, 2010. "Sharing the Cost of Global Warming," TSE Working Papers 10-186, Toulouse School of Economics (TSE).
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- Steven Shavell, 2011. "Corrective Taxation versus Liability," American Economic Review, American Economic Association, vol. 101(3), pages 273-76, May.
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