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Mitigation versus compensation in global warming policy

Author

Listed:
  • Ross McKitrick

    (University of Guelph)

Abstract

Policy discussions on global warming are focused on mitigation and adaptation. Here the role of ex post compensation as a substitute for ex ante mitigation is considered. In a simple 2-period model the salient features of the global warming problem suggest mitigation is difficult to motivate. A key problem is that damages are very hard to identify even after the fact. The roles of endogenous private savings and a compensation fund as an alternative to ex ante mitigation are explored.

Suggested Citation

  • Ross McKitrick, 2001. "Mitigation versus compensation in global warming policy," Economics Bulletin, AccessEcon, vol. 17(2), pages 1-6.
    • Handle: RePEc:ebl:ecbull:eb-01q20002
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    References listed on IDEAS

    as
    1. Toman, Michael & Shogren, Jason, 2000. "Climate Change Policy," RFF Working Paper Series dp-00-22, Resources for the Future.
    2. Stephen P. A. Brown, 1998. "Global warming policy: some economic implications," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q IV, pages 26-35.
    3. Mendelsohn, Robert & Nordhaus, William D & Shaw, Daigee, 1994. "The Impact of Global Warming on Agriculture: A Ricardian Analysis," American Economic Review, American Economic Association, vol. 84(4), pages 753-771, September.
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    More about this item

    Keywords

    Climate change;

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • H4 - Public Economics - - Publicly Provided Goods

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