Chapter Questions
Many countries are adopting a "wait-and-see" strategy toward $\mathrm{CO}_2$ emissions and atmospheric warming. What would a rational "wait-and-see" strategy look like?
In the absence of a worldwide agreement to reduce $\mathrm{CO}_2$ through a carbon tax, how effective might it be if just one country, or a small number of countries, instituted a tax unilaterally?
Rather than placing a tax on fuels or the carbon content of fuels, taxes might be put on fuel-using items, such as "gas-guzzling" cars, less efficient appliances, or houses with poor insulation. Which type of tax would be more efficient?
Global warming is predicted to affect countries differently, which is one reason it is difficult to get all countries to agree on a global $\mathrm{CO}_2$ treaty. Do you think it will be easier to get agreement after the results start showing up in different countries?
How many different formulas can you think of for allocating a reduction in global $\mathrm{CO}_2$ among the nations of the world? Compare and contrast these in terms of efficiency and equity. Consider the equiproportionate and equimarginal principles, population, income, etc.