Equity and the Convergence of Nationally Determined Climate Policies

CER-ETH – Center of Economic Research at ETH Zurich Working Paper 16/246

26 Pages Posted: 20 May 2016

See all articles by Lucas Bretschger

Lucas Bretschger

ETH Zürich - CER-ETH - Center of Economic Research at ETH Zurich

Date Written: May 17, 2016

Abstract

By adopting the Paris Agreement on climate change the world community has agreed on global goals for climate policy. However, by relying on voluntary contributions and respecting "national circumstances" it does not ensure efficient and equitable country policies. To derive guidelines for a fair burden sharing between countries the paper applies welfare theory and combines it with general equity principles. The procedure selects those "national circumstances" which are suitable for internationally acceptable policies. The concept is then compared to policies formulated by purely selfish countries. A convergence process closing the gap between country contributions and the Optimum international climate policy is developed. It is argued that equity-based signals can be a forceful means supporting this process.

Keywords: Climate policy, equity, climate agreements, social welfare

JEL Classification: Q54, Q56, D63, H40

Suggested Citation

Bretschger, Lucas, Equity and the Convergence of Nationally Determined Climate Policies (May 17, 2016). CER-ETH – Center of Economic Research at ETH Zurich Working Paper 16/246, Available at SSRN: https://ssrn.com/abstract=2780853 or http://dx.doi.org/10.2139/ssrn.2780853

Lucas Bretschger (Contact Author)

ETH Zürich - CER-ETH - Center of Economic Research at ETH Zurich ( email )

Zürichbergstrasse 18
Zurich, 8092
Switzerland

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