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to appear in Economic Letters Who should abate carbon emissions:(出现在经济信谁应该减少碳排放)
Who should abate carbon emission?
Graciela Chichilnisky and
Geoffrey Heal
June 1993, revised October 1993
Discussion Paper No. 683
to appea r in Economi c Letter s
Wh o should abat e carbon emissions?
An internationa l viewpoint
1
GRACIELA CHICHILNISKY* GEOFFREY HEAL
June 1993, revised October 1993
ABSTRACT . We review the optimal pattern of carbon emission abate-
ments across countries in a simple multi-country world. We model explicitly
(with the model in Chichilnisky [4]) the fact that the atmosphere is a public
good. Within this framework we establish conditions for it to be necessary for
optimality that the marginal cost of abatement be the same in all countries.
These condition are quite restrictive, and amount to either ignoring distribu-
tional issues between countries or operating within a framework within which
lump-sum transfers can be made between countries. These results have impli-
cations for the use of tradeable emission permits, which as normally advocated
will lead to the equalization of marginal abatement costs across countries. The
observation that the atmosphere is a public good implies that we may need to
look at a Lindahl equilibrium rather than a Walrasian equilibrium in tradeable
permit
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