Econonomics of Energy and Environmental Policy

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Some Political Economy of Global Warming

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After recent disillusions, international climate change negotiations need to be jumpstarted. This paper first argues that countries’ strategic positioning will increase the cost of delay beyond that associated with the classic free-riding problem. It then investigates the governance of an agreement and the design of negotiation and compensation, emphasizing political economy considerations. The paper concludes with a possible roadmap for future negotiations.
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JEL Codes:Q54: Climate; Natural Disasters and Their Management; Global Warming, H23: Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies, H41: Public Goods

Keywords: Global warming, International negotiations, Institutions, Compensation

DOI: 10.5547/2160-5890.1.1.10

Published in Volume 1, Number 1 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.


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