Allocating CO 2 emissions: a dynamic claims problem

Eun Jeong Heo, Jinhyuk Lee

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

We analyze carbon dioxide emissions in a dynamic framework of conflicting claims problem (O’Neill in Math Soc Sci 2:345–371, 1982). We consider five allocation rules of the standard claims problem, taking a target carbon dioxide budget as an endowment to divide and the business-as-usual emissions of countries as a claims vector. The claims problem of one period is linked to another through economic growth, as an emission allocation affects the countries’ national income, which then affects their claims of the next period. We provide a numerical analysis of this framework to illustrate how an emission allocation influences economic growth cumulatively. By comparing the growth paths, we evaluate the allocation rules by means of convergence, equality, and efficiency criteria.

Original languageEnglish
Pages (from-to)163-186
Number of pages24
JournalReview of Economic Design
Volume27
Issue number1
DOIs
Publication statusPublished - 2023 Feb

Bibliographical note

Funding Information:
This work was supported by Korea University Grant (K1809251). We are grateful to the editor and the two anonymous reviewers for helpful comments and suggestions. We thank William Thomson, Youngsub Chun, Myeonghwan Cho, and Suyi Kim for their valuable comments. Any errors that remain are our own responsibility.

Publisher Copyright:
© 2022, The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.

Keywords

  • CO emissions
  • Claims problem
  • Climate change policy
  • GDP per capita
  • Growth

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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