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An Equitable, Efficient and Implementable Scheme to Control Global Carbon Dioxide Emissions

We design an international scheme to control global carbon dioxide emissions in which autonomous developed and developing regions choose their own carbon dioxide emissions in anticipation of interregional resource transfers to be implemented by an international agency. This agency’s objective function obeys a proportional equity principle, which preserves the status-quo relative ranking of regional welfare levels. We show that it is individually rational for each region to participate in our proposed international scheme and that regional environmental authorities choose policies that internalize the global environmental externalities. These results are especially noteworthy in light of the call for international transfers from developed to developing countries in the Kyoto Protocol.

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File URL: ftp://repec.bus.usu.edu/RePEc/usu/pdf/ERI2002-22.pdf
File Function: First version, 2002
Download Restriction: no

Paper provided by Utah State University, Department of Economics in its series Working Papers with number 2002-22.

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Length: 18 pages
Date of creation: Dec 2002
Date of revision:
Handle: RePEc:usu:wpaper:2002-22
Contact details of provider: Web page: http://apec.usu.edu/
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  1. Boadway, Robin, 1982. "On the Method of Taxation and the Provision of Local Public Goods: Comment," American Economic Review, American Economic Association, vol. 72(4), pages 846-51, September.
  2. Nagase, Yoko & Silva, Emilson C. D., 2000. "Optimal Control of Acid Rain in a Federation with Decentralized Leadership and Information," Journal of Environmental Economics and Management, Elsevier, vol. 40(2), pages 164-180, September.
  3. Michael Hoel & Kerstin Schneider, 1997. "Incentives to participate in an international environmental agreement," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(2), pages 153-170, March.
  4. Michael Finus, 2004. "Modesty Pays: Sometimes!," Working Papers 2004.68, Fondazione Eni Enrico Mattei.
  5. Richard C. Cornes & Emilson C. D. Silva, 1999. "Rotten Kids, Purity, and Perfection," Journal of Political Economy, University of Chicago Press, vol. 107(5), pages 1034-1040, October.
  6. Caplan, Arthur J. & Silva, Emilson C. D., 1999. "Federal Acid Rain Games," Journal of Urban Economics, Elsevier, vol. 46(1), pages 25-52, July.
  7. Michael Finus & Bianca Rundshagen, 2005. "Participation in International Environmental Agreements: The Role of Timing and Regulation," Working Papers 2005.45, Fondazione Eni Enrico Mattei.
  8. Arthur J. Caplan & Richard C. Cornes & Emilson C. D. Silva, 2003. "An ideal Kyoto protocol: emissions trading, redistributive transfers and global participation," Oxford Economic Papers, Oxford University Press, vol. 55(2), pages 216-234, April.
  9. CHANDER, Parkash & TULKENS, Henry, 1995. "The Core of an Economy with Multilateral Environmental Externalities," CORE Discussion Papers 1995050, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Silva, Emilson C. D., 1997. "Decentralized and Efficient Control of Transboundary Pollution in Federal Systems," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 95-108, January.
  11. Wellisch, Dietmar, 1994. "Interregional spillovers in the presence of perfect and imperfect household mobility," Journal of Public Economics, Elsevier, vol. 55(2), pages 167-184, October.
  12. Pierre-Andre Chiappori & Ivan Werning, 2002. "Comment on "Rotten Kids, Purity, and Perfection"," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 475-504, April.
  13. repec:cup:cbooks:9780521477185 is not listed on IDEAS
  14. Carraro, Carlo & Siniscalco, Domenico, 1993. "Strategies for the international protection of the environment," Journal of Public Economics, Elsevier, vol. 52(3), pages 309-328, October.
  15. Silva, Emilson C. D. & Caplan, Arthur J., 1997. "Transboundary Pollution Control in Federal Systems," Journal of Environmental Economics and Management, Elsevier, vol. 34(2), pages 173-186, October.
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