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Incentives and Institutions. A Bottom-up Approach to Climate Policy

Author

Listed:
  • Carlo Carraro

    (Department of Economics, University Of Venice Ca� Foscari)

Abstract

This paper comments and assesses �Fragmented Carbon Markets and Reluctant Nations: Implications for the Design of Effective Architectures�, a paper that David Victor presented at the international workshop on "Architectures for Agreement: Addressing Global Climate Change in the Post-Kyoto World", organized by Joe Aldy and Rob Stavins at the J.F. Kennedy School of Government in May 2006. By analyzing Victor�s proposals for an effective climate agreement post 2012, this paper emphasizes the contribution that game-theoretical analyses have provided to the design of climate agreements. It therefore emphasizes how incentives and institutions play a crucial role in affecting the final outcome of negotiations on climate change control, and how incentives and institutions can be modified to achieve a better control of climate change. This paper also discusses a wider policy approach that can enhance the effectiveness of measures designed to address the climate change problem.

Suggested Citation

  • Carlo Carraro, 2006. "Incentives and Institutions. A Bottom-up Approach to Climate Policy," Working Papers 2006_49, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2006_49
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    References listed on IDEAS

    as
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    6. Carlo Carraro (ed.), 2003. "The Endogenous Formation of Economic Coalitions," Books, Edward Elgar Publishing, number 2999.
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    10. Carlo Carraro & Barbara Buchner, 2006. "Parallel Climate Blocs. Incentives to cooperation in international climate negotiations," Working Papers 2006_45, Department of Economics, University of Venice "Ca' Foscari".
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    13. Richard Baldwin, 1993. "A Domino Theory of Regionalism," NBER Working Papers 4465, National Bureau of Economic Research, Inc.
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    21. Carraro,Carlo & Siniscalco,Domenico (ed.), 1997. "New Directions in the Economic Theory of the Environment," Cambridge Books, Cambridge University Press, number 9780521590891.
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    Cited by:

    1. Judson Jaffe & Robert N. Stavins, 2008. "Linkage of Tradable Permit Systems in International Climate Policy Architecture," NBER Working Papers 14432, National Bureau of Economic Research, Inc.
    2. Hansjürgens, Bernd, 2008. "Internationale Klimapolitik nach Kyoto: Architekturen und Institutionen," UFZ Discussion Papers 10/2008, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    3. Joseph E. Aldy & Alan J. Krupnick & Richard G. Newell & Ian W. H. Parry & William A. Pizer, 2010. "Designing Climate Mitigation Policy," Journal of Economic Literature, American Economic Association, vol. 48(4), pages 903-934, December.

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    More about this item

    Keywords

    Agreements; Climate; Incentives; Negotiations; Policy;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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