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BETTER THAN KYOTO: CLIMATE STABILITY BONDS
Author(s) -
Horesh Ronnie
Publication year - 2002
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/1468-0270.00371
Subject(s) - incentive , bond , greenhouse gas , kyoto protocol , climate change , stability (learning theory) , financial stability , treaty , economics , natural resource economics , business , market economy , political science , finance , ecology , computer science , financial system , law , machine learning , biology
The Kyoto Treaty is flawed in that it attempts to tackle greenhouse gas emissions, rather than climate instability. This article describes a new financial instrument, Climate Stability Bonds, which would inject market incentives into the achievement of a stable climate. The bonds would be redeemed only when a specified degree of climate stability has been achieved. Because the bonds reward the desired outcome, rather than activities, programmes or institutions, they would provide incentives to achieve climate stability more cost‐effectively than Kyoto.