Skip to Main content Skip to Navigation
Journal articles

Tradable climate liabilities: A thought experiment

Abstract : We envision the creation of a climate liability market to address climate change. Each period, countries are issued liability commensurate to their emissions of the period. Liability bearers are required to pay over time, as climate harm materializes. Revenues are used to compensate participating countries in proportion of climate harm. Because liabilities are traded like financial debt among participants, the mechanism achieves a unique carbon price through decentralization of the choice of a discount rate as well as beliefs about the severity of the climate problem. We discuss properties of such a mechanism along the dimensions of efficiency, fairness, exposure to risk, commitment, participation, as well as implementation challenges.
Complete list of metadata

https://hal.archives-ouvertes.fr/hal-02504760
Contributor : Accord Elsevier CCSD Connect in order to contact the contributor
Submitted on : Monday, October 25, 2021 - 3:16:15 PM
Last modification on : Tuesday, April 12, 2022 - 4:12:04 PM
Long-term archiving on: : Wednesday, January 26, 2022 - 9:06:24 PM

File

S0921800918319566.pdf
Files produced by the author(s)

Licence


Distributed under a Creative Commons Attribution - NonCommercial 4.0 International License

Identifiers

Citation

Etienne Billette de Villemeur, Justin Leroux. Tradable climate liabilities: A thought experiment. Ecological Economics, Elsevier, 2019, 164, pp.106355. ⟨10.1016/j.ecolecon.2019.106355⟩. ⟨hal-02504760⟩

Share

Metrics

Record views

23

Files downloads

26