Author: Decanio, Stephen J.

Source: Climate Policy, Volume 7, Number 2, 2007 , pp. 91-103(13)

Publisher: Earthscan

Abstract:

Much of the debate on climate policy in the USA focuses on the gain or loss to the macroeconomy of alternative policies to reduce greenhouse gas emissions. However, the economy is made up of multiple individuals, not a single representative agent. This article reports the results of alternative ways of distributing emissions allocations across citizens. Macroeconomic effects interact with the policy for distribution, but the distributional weights are more important for the welfare of individual agents than the economy-wide effects of the emissions reductions. Egalitarian distributions of the emissions allowances have the potential to increase the welfare of most people, even if significant emissions reductions are mandated. Focusing on the distribution of emissions allowances (or the revenues generated from an emissions tax) rather than on aggregate GDP may provide guidance in identifying and implementing politically viable solutions to the climate change mitigation problem.

Pour une grande partie du débat climatique aux Etats-Unis, les politiques de réduction de gaz à effet de serre sont évaluées en terme de profit ou de pertes macroéconomiques. Cela dit, l'économie est formée d'individus multiples, et non pas d'un seul agent représentatif. Cet article communique les résultats de différentes méthodes de répartition des droits d'émissions parmi les citoyens. Les impacts macroéconomiques interagissent avec la politique en matière de répartition, mais le poids de la répartition a plus d'impact sur le bien-être individuel que les effets économiques globaux. Une répartition égalitaire des droits d'émissions a le potentiel d'augmenter le bien-être de la plupart des agents économiques, même dans le cadre d'une politique ambitieuse de réduction d'émissions. Une perspective basée sur la distribution de droits d'émissions (ou les revenus issus d'une taxe sur les émissions) plutôt que sur le PIB accumulé donnerait ainsi une légitimité politique à l'élaboration de politiques climatiques.

Keywords: cap-and-trade; climate policy; distributional effects of climate policies; emissions allowances; greenhouse gas emissions reductions; income distribution; macroeconomic effects of climate policies; wealth distribution

Document Type: Research article

Publication date: 2007-01-01

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• Editor in Chief: Michael Grubb, Cambridge University, UK

  Climate Policy presents the highest quality refereed research and analysis on the policy issues raised by climate change, and provides a forum for commentary and debate. It addresses both the mitigation of, and adaptation to, climate change, within and between the different regions of the world. It encourages a trans-disciplinary approach to these issues at international, regional, national and sectoral levels.

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