On the Design of Global Refunding and Climate Change
نویسندگان
چکیده
We design a global refunding scheme as a new international approach to address climate change. A global refunding system allows each country to set its carbon emission tax, while aggregate tax revenues are partially refunded to member countries in proportion to the relative emission reductions they achieve within a given period. In a simple model we show that a suitably designed global refunding scheme is self-enforcing and achieves the social global optimum, provided that all countries participate in the GRS.
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