A New Understanding of Coase Theorem and Emission Rights Trading of All People

Hong Sheng ()
Additional contact information
Hong Sheng: Research Fellow of Unirule Institute of Economics, Independent Scholar, Beijing, China

Man and the Economy, 2023, vol. 10, issue 2, 75-100

Abstract: The condition of “defining property rights” in Coase Theorem is actually the key method to solve the external infringement problems such as air pollution. It changes the public nature of external infringement into private nature. Because the cost of trading private goods is much lower than that of public goods, it will greatly simplify the solution of air pollution and other problems. The primary reason why emissions trading has achieved some success is that emission quotas define the property rights (or responsibilities) among emitters. This turns public externalities into private externalities, and subsequently forms protected and tradable private property rights. As the total amount and quota of emissions still have to be arranged by the emission regulatory authorities, emissions trading has not completely got rid of the government’s intervention. Therefore, this paper suggests that all emission quotas should be given to all residents in the world, and each of them has an equal share of emission quotas, which can be traded in the online global carbon emission market, and emitters can buy emission quotas in the market. In this way, the value of reducing carbon emissions for everyone can be evaluated more accurately, and the deadlock between countries can be broken, so that the cause of reducing carbon emissions can have a great development.

Keywords: coase theorem; external infringement; emissions trading; public externalities; private externalities; carbon emissions (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/me-2024-2007 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

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:bpj:maneco:v:10:y:2023:i:2:p:75-100:n:1003

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/me/html

DOI: 10.1515/me-2024-2007

Access Statistics for this article

Man and the Economy is currently edited by Ning Wang

More articles in Man and the Economy from De Gruyter
Bibliographic data for series maintained by Peter Golla ().