EconPapers    
Economics at your fingertips  
 

Constraining Equitable Allocations of Tradable CO 2 Emission Quotas by Acceptability

M. Germain () and Vincent van Steenberghe

Environmental & Resource Economics, 2003, vol. 26, issue 3, 469-492

Abstract: Since the signing of the Kyoto Protocol, future commitments are likely to beframed in terms of tradable quotas. The discussions on the allocation of thequotas among countries will be based – at least partly – on rulescorresponding to a certain conception of equity. For instance, allocatingquotas in direct proportion to population, in relation to GDP or accordingto past emissions has been advocated. Taking a long term perspective, wecompute such allocations of tradable quotas with a dynamic (closed-loop)model. The total amount of quotas to be distributed at each periodcorresponds to the world optimal amount of emissions to be realized at eachperiod. We observe that most “equitable” allocation rules do not make theagreement individually rational for every country along the entire timepath. We then propose a mechanism which determines allocations of quotasthat are as close as possible to any “equitable” allocation while satisfyingindividual rationality. Copyright Kluwer Academic Publishers 2003

Keywords: acceptability; climate change; dynamic games; equity; tradable quotas (search for similar items in EconPapers)
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hdl.handle.net/10.1023/B:EARE.0000003625.77571.9f (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Constraining equitable allocations of tradable CO2 emission quotas by acceptability (2003)
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:kap:enreec:v:26:y:2003:i:3:p:469-492

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

DOI: 10.1023/B:EARE.0000003625.77571.9f

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-19
Handle: RePEc:kap:enreec:v:26:y:2003:i:3:p:469-492