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A simple model of â€œhourglassâ€ problems is presented. For such problems, the benefit of a national policy measure is propagated to all countries through one single world-wide variable. The prime example is the effect of the reduction of CO 2 emission on the world climate. Five optimal solutions are given, for various situations and points of view, followed by a comparison with the outcome of permit trading.

Hourglass Models of World-Wide Problems Such as Climate Change