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Climate and Industrial Policy in an Asymmetric World

  • Gries, Thomas

Climate change is a phenomenon leading to randomly distributed disasters around the globe. Due to massive economic and technical asymmetry between the advanced North and the developing South efficient climate and industrial policy is particular difficult. Globally efficient policy would need to equip the South with pollution reducing technologies. However, there is a tradeoff between capital accumulation for consumption growth and low-carbon development. The pollution stock affecting today.s climate was historically accumulated by the North, therefore, the .ability-to-pay principal. and the .polluter pays principle. suggest to allocate the main burden of climate change policy to the advanced economies.

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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper WP2011/79.

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Length: 30
Date of creation: 2011
Date of revision:
Handle: RePEc:unu:wpaper:wp2011-79
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  1. J. Peter Neary, 2005. "International trade and the environment : theoretical and policy linkages," Working Papers 200018, School of Economics, University College Dublin.
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  8. Oikonomou, Vlasis & Jepma, Catrinus & Becchis, Franco & Russolillo, Daniele, 2008. "White Certificates for energy efficiency improvement with energy taxes: A theoretical economic model," Energy Economics, Elsevier, vol. 30(6), pages 3044-3062, November.
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