Climate Policy

Reminder of Some Lessons of Basic Economics Public Goods

I would stress two basic economic ideas here. The first is the idea of a public good. It is generally understood that the climate system is a global public good par excellence For better or for worse (some projected impacts of climate change are positive for some people) a change in the climate affects everyone in the world. What seems to have been less often considered is the usual method by which a public good is acquired. For a classic public good, such as national defense, a national...

Climate Regime and the Cobenefits from Regional Cooperation

Regional cooperation, as promoted by the principle 9 of the Rio Declaration on the Environment, may be supported by compelling arguments. However, countries are so diverse in terms of institutional capacities and political structure that deploying complementarities can become a very complicated business. In the South Asia region,7 for example, there are diverse endowments in energy resources coal in India, gas in Bangladesh, hydro potential in the Himalayan nations of Bhutan and Nepal, and...