EconStor >
Universität Siegen >
Fakultät III: Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht, Universität Siegen >
Volkswirtschaftliche Diskussionsbeiträge, Universität Siegen >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/57269
  
Title:The carbon-budget approach to climate stabilization: Costeffective subglobal versus global action PDF Logo
Authors:Eichner, Thomas
Pethig, Rüdiger
Issue Date:2010
Series/Report no.:Volkswirtschaftliche Diskussionsbeiträge, Universität Siegen, Fakultät III: Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht 143
Abstract:Scientific expertise suggests that mitigating extreme world-wide climate change damages requires avoiding increases in the world mean temperature exceeding 2ê Celsius. To achieve the two degree target, the cumulated global emissions must not exceed some limit, the so-called global carbon budget. In a two-period twocountry general equilibrium model with a finite stock of fossil fuels we compare the cooperative cost-effective policy with the unilateral cost-effective policy of restricting emissions to the global carbon budget. In its simplest form, the cost-effective global policy is shown to consist of a joint emission trading scheme in the first period (only). In sharp contrast, subglobal cost-effective regulation may require the abating country to tax its first-period consumption and to tax or subsidize its emissions in the first and/or second period.
Subjects:carbon emissions
carbon budget
cooperative
unilateral
cost-effective regulation
JEL:H21
H23
Q54
Q58
Document Type:Working Paper
Appears in Collections:Volkswirtschaftliche Diskussionsbeiträge, Universität Siegen

Files in This Item:
File Description SizeFormat
638504198.pdf353.25 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/57269

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.