Curbing Emissions through a Carbon Liabilities Market: A note from a climate skeptic's perspective

Justin Leroux
Authors registered in the RePEc Author Service: Etienne Billette de Villemeur

CIRANO Working Papers from CIRANO

Abstract: We argue for the creation of a carbon liabilities market to address climate change. Each period, countries would be made liable for their share of responsibility in current climate damage. Because liabilities could be traded like financial debt, robustness to strategic manipulations and efficiency ensue. Moreover, this decentralizes the choice of the rate by which countries discount future benefits and damage. Rather than being based on an expected discounted sum of future marginal damage (as with a carbon tax or tradable emission permits) our proposal relies only on observed realized damage and on the well-documented emission history of countries.

Keywords: Carbon Liabilities; Climate Policy; Market Instruments (search for similar items in EconPapers)
JEL-codes: H23 Q54 (search for similar items in EconPapers)
Date: 2014-02-01
New Economics Papers: this item is included in nep-ene, nep-env and nep-res
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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2014s-20

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