Curbing emissions through (efficient) carbon liabilities: A note from a climate skeptic's perspective

Etienne Billette de Villemeur and Justin Leroux

MPRA Paper from University Library of Munich, Germany

Abstract: We propose a new climate policy that is efficient, robust, and asks for payments proportional to realized climate damage. In each period, countries are made liable for their share of the responsibility in the current damage. Efficiency follows from countries' anticipations of climate change, hence of future payments. Robustness is achieved thanks to the introduction of a market for carbon liabilities. Rather than being based on the 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: Climate Change; Ex-ante vs ex-post approach; Carbon Liability (search for similar items in EconPapers)
JEL-codes: H23 K13 Q54 (search for similar items in EconPapers)
Date: 2013-05
New Economics Papers: this item is included in nep-ene, nep-env and nep-res
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https://mpra.ub.uni-muenchen.de/53601/9/MPRA_paper_53601.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:46953

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