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Sharing the Cost of Global Warming *
Author(s) -
de Villemeur Etienne Billette,
Leroux Justin
Publication year - 2011
Publication title -
the scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/j.1467-9442.2011.01675.x
Subject(s) - externality , equity (law) , globe , economics , global warming , distribution (mathematics) , context (archaeology) , compensation (psychology) , climate change , cost sharing , natural resource economics , microeconomics , geography , political science , psychology , ecology , mathematical analysis , mathematics , archaeology , biology , psychoanalysis , law , ophthalmology , medicine
For meteorological reasons, the distribution of climate‐change damage bears no relationship to the distribution of emissions across the globe. We argue in favor of offsetting this discrepancy. We propose a global insurance scheme of sorts, to be financed according to countries’ responsibilities in the matter. We analyze this horizontal equity problem using a responsibility/compensation framework, which we have adapted to a context of externalities. We characterize new versions of two well‐known cost‐sharing schemes.