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Core-stable and equitable allocations of greenhouse gas emission permits

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  • VAN STEENBERGHE, Vincent

Abstract

This paper deals with the issue of how to allocate greenhouse gas emission permits to nations in the long run. The so-called "equitable" rules to allocate such permits under a global agreement (per capita or grandfathering allocation rules for instance) do not necessarily ensure stability in the sense of the core of a cooperative game: some nations and groups of nations may typically be worse off under the global agreement than in alternative non-cooperative situations. We present a way to compute allocations of permits satisfying core constraints at each commitment period, while being as close as possible to any given "equitable" allocation. Then a simple world simulation model is used to analyze the long run welfare effects of these allocations.

Suggested Citation

  • VAN STEENBERGHE, Vincent, 2004. "Core-stable and equitable allocations of greenhouse gas emission permits," LIDAM Discussion Papers CORE 2004075, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2004075
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    Cited by:

    1. Chander, Parkash & Tulkens, Henry, 2006. "Cooperation, Stability and Self-Enforcement in International Environmental Agreements: A Conceptual Discussion," Coalition Theory Network Working Papers 12170, Fondazione Eni Enrico Mattei (FEEM).
    2. Chander, Parkash & Tulkens, Henry, 2006. "Cooperation, Stability and Self-Enforcement in International Environmental Agreements: A Conceptual Discussion," Coalition Theory Network Working Papers 12170, Fondazione Eni Enrico Mattei (FEEM).
    3. Tulkens, Henry, 2014. "Internal vs. core coalitional stability in the environmental externality game: A reconciliation," LIDAM Discussion Papers CORE 2014058, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Qianting Zhu & Wenwu Tang, 2017. "Regional-Level Carbon Allocation in China Based on Sectoral Emission Patterns under the Peak Commitment," Sustainability, MDPI, vol. 9(4), pages 1-18, April.

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