Sharing the Cost of Global Warming

26 Pages Posted: 29 Nov 2011

See all articles by Etienne Billette de Villemeur

Etienne Billette de Villemeur

University of Lille I - EQUIPPE

Justin Leroux

HEC Montreal - Institute of Applied Economics; CIRANO

Date Written: December 2011

Abstract

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.

Keywords: Climate change, responsibility, egalitarian liberalism, D62, D63, Q54

Suggested Citation

de Villemeur, Etienne Billette and Leroux, Justin, Sharing the Cost of Global Warming (December 2011). The Scandinavian Journal of Economics, Vol. 113, Issue 4, pp. 758-783, 2011, Available at SSRN: https://ssrn.com/abstract=1965889 or http://dx.doi.org/10.1111/j.1467-9442.2011.01675.x

Etienne Billette De Villemeur (Contact Author)

University of Lille I - EQUIPPE

Université Lille 1 Sciences et Technologies
Faculté des Sciences Economiques et Sociales
Villeneuve d'Ascq, 59655
France

Justin Leroux

HEC Montreal - Institute of Applied Economics ( email )

3000, ch. de la Côte-Ste-Catherine
Montréal, Quebec H3T 2A7
Canada

CIRANO ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

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