Constraining equitable allocations of tradable greenhouse gases emission quotas by acceptability

Marc Germain and Vincent van Steenberghe

No 2001005, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: Allocations of tradable greenhouse gases (GHG) emission quotas among countries may take place according to several sharing rules corresponding to a certain perception of equity. For instance, allocating quotas in direct proportion to population, in inverse relation to GDP or according to past emissions has been advocated. Taking a long term perspective, we compute such allocations of tradable quotas with a dynamic model developped on the basis of the RICE model (Norhaus and Yang, 1996). The total amount of quotas to be distributed in each period corresponds to the total optimal amount of emissions to be realised at each period. We observe that the "equitable" quotas allocation rules the most often referred to are not acceptable by every country at every period: some of them would be better off by not co-operating. We then propose a mechanism which determines allocations of GHG emission quotas that satisfy as much as possible each "equitable" allocation rule while keeping acceptability for each country.

Keywords: environmental economics; climate change; dynamic games; tradable permits; equitable allocations (search for similar items in EconPapers)
JEL-codes: C73 F42 H23 Q25 Q28 (search for similar items in EconPapers)
Date: 2001-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://sites.uclouvain.be/core/publications/coredp/coredp2001.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2001005

Access Statistics for this paper

More papers in LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium). Contact information at EDIRC.
Bibliographic data for series maintained by Alain GILLIS ().