Universität zu Köln

Cramton, Peter ORCID: 0000-0001-8621-1092, Ockenfels, Axel ORCID: 0000-0003-1456-0191 and Stoft, Steven (2015). An International Carbon-Price Commitment Promotes Cooperation. Econ. Energy Environ. Policy, 4 (2). S. 51 - 65. CLEVELAND: INT ASSOC ENERGY ECONOMICS. ISSN 2160-5890

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Abstract

To promote cooperation in international climate negotiations, negotiators should focus on a common commitment. Such commitments have the advantage of facilitating reciprocal I will if you will agreements in a group. Reciprocity is the basis for cooperation in repeated public goods games, and a uniform price would provide a natural focal point for a common international commitment. Such a price is also essential for efficient abatement. Countries would retain flexibility in how to implement the price with cap-and-trade, a carbon tax, or a hybrid approach. Country risk is reduced relative to risk under international cap-and-trade since carbon revenues stay within the country. Price commitments also tend to equalize effort intensity and can facilitate enforcement. To encourage participation by less-developed countries, a green fund is needed to transfer money from richer to poorer countries. Transfers are smaller and more predictable with a uniform price commitment than with international cap and trade.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Cramton, Peter UNSPECIFIED orcid.org/0000-0001-8621-1092 UNSPECIFIED Ockenfels, Axel UNSPECIFIED orcid.org/0000-0003-1456-0191 UNSPECIFIED Stoft, Steven UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-394616
DOI:	10.5547/2160-5890.4.2.aock
Journal or Publication Title:	Econ. Energy Environ. Policy
Volume:	4
Number:	2
Page Range:	S. 51 - 65
Date:	2015
Publisher:	INT ASSOC ENERGY ECONOMICS
Place of Publication:	CLEVELAND
ISSN:	2160-5890
Language:	English
Faculty:	Faculty of Management, Economy and Social Sciences
Divisions:	Faculty of Management, Economics and Social Sciences > Economics > Macroeconomic, Financial and Economic Policy > Professur für Economics, Design and Behavior
Subjects:	Economics
Uncontrolled Keywords:	Keywords Language Economics; Environmental Studies Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/39461