IDEAS home Printed from https://ideas.repec.org/a/kap/openec/v16y2005i1p23-31.html
   My bibliography  Save this article

A Theoretical Inefficiency in the International Marketing of Tradable Global Warming Emission Permits

Author

Listed:
  • Robert Kohn

Abstract

When the disutility of global pollution is measured in units of a numeraire good that is polluting in consumption, the marginal rates of substitution in consumption are generally weighted differently in each country’s calculation of marginal damages. In that case, it is inefficient to control global warming by tradable emission permits, which in theory trade at a unique international equilibrium price. This conclusion is derived from a model of Shibata (1996) in which consumption is pervasively polluting in global warming gases. Shibata dubiously based the inefficiency he discovered on the reciprocal external damages of global warming emissions rather than on the nullibicity he posed for a non-polluting numeraire good. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Robert Kohn, 2005. "A Theoretical Inefficiency in the International Marketing of Tradable Global Warming Emission Permits," Open Economies Review, Springer, vol. 16(1), pages 23-31, January.
    • Handle: RePEc:kap:openec:v:16:y:2005:i:1:p:23-31
    DOI: 10.1007/s11079-005-5330-3
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11079-005-5330-3
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11079-005-5330-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kohn, Robert E., 2001. "Unilateral transfer of abatement capital," Resource and Energy Economics, Elsevier, vol. 23(2), pages 85-95, April.
    2. Pan, Haoran & Regemorter, Denise Van, 2004. "The costs and benefits of early action before Kyoto compliance," Energy Policy, Elsevier, vol. 32(13), pages 1477-1486, September.
    3. Parry, Ian W. H. & Williams III, Roberton C., 1999. "A second-best evaluation of eight policy instruments to reduce carbon emissions," Resource and Energy Economics, Elsevier, vol. 21(3-4), pages 347-373, August.
    4. Robert E. Kohn, 1998. "Pollution and the Firm," Books, Edward Elgar Publishing, number 1313.
    5. Robert Mendelshohn & Daigee Shaw (ed.), 1996. "The Economics of Pollution Control in the Asia Pacific," Books, Edward Elgar Publishing, number 733.
    6. Arthur J. Caplan & Richard C. Cornes & Emilson C. D. Silva, 2003. "An ideal Kyoto protocol: emissions trading, redistributive transfers and global participation," Oxford Economic Papers, Oxford University Press, vol. 55(2), pages 216-234, April.
    7. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
    8. John Duggan & Joanne Roberts, 2002. "Implementing the Efficient Allocation of Pollution," American Economic Review, American Economic Association, vol. 92(4), pages 1070-1078, September.
    9. Thomas H. Tietenberg, 1973. "Specific Taxes and the Control of Pollution: A General Equilibrium Analysis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(4), pages 503-522.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fullerton, Don & Ta, Chi L., 2019. "Environmental policy on the back of an envelope: A Cobb-Douglas model is not just a teaching tool," Energy Economics, Elsevier, vol. 84(S1).
    2. Daigee Shaw & Ming-Feng Hung, 2001. "Evolution and evaluation of air pollution control policy in Taiwan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 4(3), pages 141-166, September.
    3. Francois Destandau & Amir Nafi, 2010. "What is the Best Distribution for Pollution Abatement Efforts? Information for Optimizing the WFD Programs of Measures," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(3), pages 337-358, July.
    4. Jiang, Tingsong, 2001. "Earmarking of pollution charges and the sub-optimality of the Pigouvian tax," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(4), pages 1-18.
    5. West, Sarah E. & Williams, R.C.Roberton III, 2004. "Estimates from a consumer demand system: implications for the incidence of environmental taxes," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 535-558, May.
    6. Ross McKitrick, 1999. "A Cournot Mechanism for Pollution Control under Asymmetric Information," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 14(3), pages 353-363, October.
    7. Candel-Sanchez, Francisco, 2006. "The externalities problem of transboundary and persistent pollution," Journal of Environmental Economics and Management, Elsevier, vol. 52(1), pages 517-526, July.
    8. Sanchirico, James N. & Wilen, James E., 2005. "Optimal spatial management of renewable resources: matching policy scope to ecosystem scale," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 23-46, July.
    9. Yukihiro Nishimura, 2008. "A Lindahl Solution To International Emissions Trading," Working Paper 1177, Economics Department, Queen's University.
    10. Burtraw, Dallas & Palmer, Karen L. & Heintzelman, Martin, 2000. "Electricity Restructuring: Consequences and Opportunities for the Environment," Discussion Papers 10854, Resources for the Future.
    11. Kotchen, Matthew J. & Salant, Stephen W., 2011. "A free lunch in the commons," Journal of Environmental Economics and Management, Elsevier, vol. 61(3), pages 245-253, May.
    12. Frans P. Vries & Nick Hanley, 2016. "Incentive-Based Policy Design for Pollution Control and Biodiversity Conservation: A Review," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(4), pages 687-702, April.
    13. Yu-Bong Lai, 2004. "Trade liberalization, consumption externalities and the environment," Economics Bulletin, AccessEcon, vol. 17(5), pages 1-9.
    14. Ni, Jinlan & Wei, Chu & Du, Limin, 2015. "Revealing the political decision toward Chinese carbon abatement: Based on equity and efficiency criteria," Energy Economics, Elsevier, vol. 51(C), pages 609-621.
    15. Giancarlo Giudici & Massimiliano Guerini & Cristina Rossi-Lamastra, 2019. "The creation of cleantech startups at the local level: the role of knowledge availability and environmental awareness," Small Business Economics, Springer, vol. 52(4), pages 815-830, April.
    16. Grüll, Georg & Taschini, Luca, 2011. "Cap-and-trade properties under different hybrid scheme designs," Journal of Environmental Economics and Management, Elsevier, vol. 61(1), pages 107-118, January.
    17. Na Li Dawson & Kathleen Segerson, 2008. "Voluntary Agreements with Industries: Participation Incentives with Industry-Wide Targets," Land Economics, University of Wisconsin Press, vol. 84(1), pages 97-114.
    18. Sam Fankhauser & Cameron Hepburn, 2009. "Carbon markets in space and time," GRI Working Papers 3, Grantham Research Institute on Climate Change and the Environment.
    19. Ehigiamusoe, Kizito Uyi & Lean, Hooi Hooi & Smyth, Russell, 2020. "The moderating role of energy consumption in the carbon emissions-income nexus in middle-income countries," Applied Energy, Elsevier, vol. 261(C).
    20. Joseph E. Aldy & William A. Pizer, 2009. "Issues in Designing U.S. Climate Change Policy," The Energy Journal, , vol. 30(3), pages 179-210, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:openec:v:16:y:2005:i:1:p:23-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.