Allocating $$\hbox {CO}_2$$ CO 2 emissions: a dynamic claims problem

Eun Jeong Heo () and Jinhyuk Lee ()
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Eun Jeong Heo: University of Seoul
Jinhyuk Lee: Korea University

Review of Economic Design, 2023, vol. 27, issue 1, No 7, 163-186

Abstract: Abstract We analyze carbon dioxide emissions in a dynamic framework of conflicting claims problem (O’Neill in Math Soc Sci 2:345–371, 1982). We consider five allocation rules of the standard claims problem, taking a target carbon dioxide budget as an endowment to divide and the business-as-usual emissions of countries as a claims vector. The claims problem of one period is linked to another through economic growth, as an emission allocation affects the countries’ national income, which then affects their claims of the next period. We provide a numerical analysis of this framework to illustrate how an emission allocation influences economic growth cumulatively. By comparing the growth paths, we evaluate the allocation rules by means of convergence, equality, and efficiency criteria.

Keywords: $$\hbox {CO}_2$$ CO 2 emissions; Claims problem; Climate change policy; GDP per capita; Growth (search for similar items in EconPapers)
JEL-codes: D7 H4 H8 Q54 Q58 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10058-021-00286-z

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