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After twenty-five years of failure, climate negotiations continue to use a “pledge and review” approach: countries pledge (almost anything), subject to (unenforced) review. This approach ignores everything we know about human cooperation. In this book, leading economists describe an alternate model for climate agreements, drawing on the work of the late Nobel laureate Elinor Ostrom and others. They show that a “common commitment” scheme is more effective than an “individual commitment” scheme; the latter depends on altruism while the former involves reciprocity (“we will if you will”).
The contributors propose that global carbon pricing is the best candidate for a reciprocal common commitment in climate negotiations. Each country would commit to placing charges on carbon emissions sufficient to match an agreed global price formula. The contributors show that carbon pricing would facilitate negotiations and enforcement, improve efficiency and flexibility, and make other climate policies more effective. Additionally, they analyze the failings of the 2015 Paris climate conference.
Richard N. Cooper, Peter Cramton, Ottmar Edenhofer, Christian Gollier, Éloi Laurent, David JC MacKay, William Nordhaus, Axel Ockenfels, Joseph E. Stiglitz, Steven Stoft, Jean Tirole, Martin L. Weitzman
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About the Author
The late Sir David JC MacKay was Regius Professor of Engineering at the University of Cambridge and Chief Scientific Advisor to the United Kingdom's Department of Energy and Climate Change.
Axel Ockenfels is Professor of Economics at the University of Cologne.
Steven Stoft is an economic consultant and author of Carbonomics.
Richard N. Cooper is Maurits C. Boas Professor of International Economics at Harvard University.
Christian Gollier is Professor of Economics at the University of Toulouse.
William D. Nordhaus is Sterling Professor of Economics at Yale University.
Ian Parry is Principal Environmental Fiscal Policy Expert in the IMF's Fiscal Affairs Department.
Joseph Stiglitz, a 2001 Nobel Laureate, is University Professor at Columbia University.
Jean Tirole, the 2014 Nobel Laureate in Economics, is Scientific Director of IDEI (Institut d'Economie Industrielle), Chairman of the Board of TSE (Toulouse School of Economics), and Annual Visiting Professor of Economics at MIT.
Table of Contents
Three Introductory Chapters
1 Why Paris Did Not Solve the Climate Dilemma Richard N. Cooper Peter Cramton Ottmar Edenhofer Christian Gollier Éloi Laurent David JC MacKay William Nordhaus Axel Ockenfels Joseph Stiglitz Steven Stoft Jean Tirole Martin L. Weitzman 1
2 Price Carbon-I Will If You Will David JC MacKay Peter Cramton Axel Ockenfels Steven Stoft 7
3 Reflections on the International Coordination of Carbon Pricing Ian W. H. Parry 13
Nine Perspectives on Cooperation and Global Carbon Pricing
4 Global Carbon Pricing Peter Cramton Axel Ockenfels Steven Stoft 31
5 The Case for Pricing Greenhouse Gas Emissions Richard N. Cooper 91
6 Overcoming the Copenhagen Failure with Flexible Commitments Joseph E. Stiglitz 99
7 Climate Clubs and Carbon Pricing William Nordhaus 109
8 How a Minimum Carbon-Price Commitment Might Help to Internalize the Global Warming Externality Martin L. Weitzman 125
9 Climate Policy at an impasse Ottmar Edenhofer Axel Ockenfels 149
10 Effective Institutions against Climate Change Christian Gollier Jean Tirole 165
11 From the Paris Agreement to the Carbon Convergence Éloi Laurent 205
12 An International Carbon-Price Commitment Promotes Cooperation Peter Cramton Axel Ockenfels Steven Stoft 221
What People are Saying About This
The threat of climate change can be managed only by global cooperation.Here a distinguished panel of experts applies fundamental principles of economics to show how such global efforts can be sustained.This is a great and important book.
The threat of climate change can be managed only by global cooperation.Here a distinguished panel of experts applies fundamental principles of economics to show how such global efforts can be sustained.This is a great and important book.Roger Myerson, Glen A. Lloyd Distinguished Service Professor of Economics, University of Chicago; 2007 Nobel laureate, Economics
The threat of climate change can be managed only by global cooperation. Here a distinguished panel of experts applies fundamental principles of economics to show how such global efforts can be sustained. This is a great and important book. Roger Myerson , Glen A. Lloyd Distinguished Service Professor of Economics, University of Chicago; 2007 Nobel laureate, Economics