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Sharing the Burden for Climate Change Mitigation in the Canadian Federation

Christoph Böhringer, Nicholas Rivers, Thomas F. Rutherford, Randall Wigle ()
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Christoph Böhringer, Nicholas Rivers, Thomas F. Rutherford, Randall Wigle: Wilfrid Laurier University, https://www.balsillieschool.ca/people/randall-m-wi

Authors registered in the RePEc Author Service: Christoph Böhringer, Nicholas Rivers and Randall M. Wigle

LCERPA Working Papers from Laurier Centre for Economic Research and Policy Analysis

Abstract: Dividing the burden for greenhouse gas abatement amongst the provinces has proven challenging in Canada, and is a major factor contributing to Canada’s poor historic performance on greenhouse gas abatement. As the country aims to achieve substantial cuts to emissions over the next decade and by mid-century, such burden sharing considerations are likely to be elevated in importance. This paper uses a detailed Canadian computable general equilibrium model to compare a number of archetypal rules for sharing the burden of a joint commitment amongst members for the case of greenhouse gas reductions in Canada. Because of the substantial heterogeneity amongst Canadian provinces, these different burden sharing rules imply significantly different relative abatement effort amongst provinces, and also significantly different welfare implications. We compare these archetypal burden sharing rules to existing provincial emission reduction commitments, and find that none of the standard burden sharing rules comes close to existing commitments. We argue that future efforts to share the burden of greenhouse gas abatement in Canada would be more successful if they were informed by a formal analysis such as the one presented here.

Keywords: climate change; burden sharing; policy; computable general equilibrium model (search for similar items in EconPapers)
JEL-codes: C68 Q50 (search for similar items in EconPapers)
Pages: 47
Date: 2015-01-01, Revised 2015-01-01
New Economics Papers: this item is included in nep-cmp, nep-ene and nep-env
Note: LCERPA Working Paper No. 2015-1
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Citations: View citations in EconPapers (15)

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Related works:
Journal Article: Sharing the burden for climate change mitigation in the Canadian federation (2015) Downloads
Journal Article: Sharing the burden for climate change mitigation in the Canadian federation (2015) Downloads
Working Paper: Sharing the burden for climate change mitigation in the Canadian federation (2014) Downloads
Working Paper: Sharing the burden for climate change mitigation in the Canadian federation (2014) Downloads
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