The Public Economics of Climate Change

47 Pages Posted: 22 Nov 2015

See all articles by Agnar Sandmo

Agnar Sandmo

Norwegian School of Economics (NHH); Norwegian School of Economics (NHH) - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: November 16, 2015

Abstract

This paper considers the challenges to the field of public economics that arise from the issue of global warming. It outlines the argument for viewing the global climate as a public good and describes the problems that emerge when one tries to apply the insights of public goods theory to global public goods such as global warming. Special topics considered include the free rider problem in an international context and the extent to which private preferences should be taken into account in policy formation. The paper also includes a discussion of cost sharing in global climate policy and the design of policy when instruments for redistribution are imperfect. Green taxes are powerful tools for regulating emissions, and these are discussed both in a national and international context with emphasis on the proposal for a global CO2 tax. Finally there is a discussion of the several dimensions of distributional justice that arise in the context of climate policy.

JEL Classification: D60, H23, Q54

Suggested Citation

Sandmo, Agnar, The Public Economics of Climate Change (November 16, 2015). NHH Dept. of Economics Discussion Paper No. 27/2015. Available at SSRN: https://ssrn.com/abstract=2693142 or http://dx.doi.org/10.2139/ssrn.2693142

Agnar Sandmo (Contact Author)

Norwegian School of Economics (NHH) ( email )

Helleveien 30
Bergen, NO-5045
Norway
+47 55 95 92 76 (Phone)

Norwegian School of Economics (NHH) - Department of Economics

Helleveien 30
N-5035 Bergen
Norway

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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