Abstract
ne of the major obstacles to reaching a comprehensive agreement on global warming is the setting of greenhouse gas emission reduction targets for individual countries. Long-standing tensions between industrialized and developing countries have raised the issue of equity in burden-sharing. Moreover, individual industrialized nations have pleaded special circumstances and have sought differentiation in their obligations. This paper analyzes alternative rules for distributing tradable carbon dioxide emissions permits. A non-linear programming model, which distinguishes between allocation-based and outcome-based rules, is used to analyze the relative welfare outcomes. The model is applied to the world body of nations and yields several important policy implications.
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Rose, A., Stevens, B., Edmonds, J. et al. International Equity and Differentiation in Global Warming Policy. Environmental and Resource Economics 12, 25–51 (1998). https://doi.org/10.1023/A:1008262407777
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DOI: https://doi.org/10.1023/A:1008262407777