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A Game-Theoretic Model Of International Climate Change Negotiations, Shi-Ling Hsu
A Game-Theoretic Model Of International Climate Change Negotiations, Shi-Ling Hsu
Shi-Ling Hsu
Exactly why the nations of the world have had difficulty in reaching agreement on reducing greenhouse gases that cause climate change is something of a puzzle. Although the future generations that will suffer the greater costs from climate change will probably be wealthier, the non-trivial risks that climate change will be catastrophic would seem to merit the collective purchase of some insurance in the form of greenhouse gas mitigation. Political economy, collective action, and psychological explanations all play a part in accounting for the international impasse, but all are incomplete. This article presents a simple game-theoretic model that illustrates the …
A Prediction Market For Climate Outcomes, Shi-Ling Hsu
A Prediction Market For Climate Outcomes, Shi-Ling Hsu
Shi-Ling Hsu
This article proposes a way of introducing some organization and tractability in climate science, generating more widely credible evaluations of climate science, and imposing some discipline on the processing and interpretation of climate information. I propose a two-part policy instrument consisting of (1) a carbon tax that is indexed to a "basket" of climate outcomes, and (2) nested inside this carbon tax, a cap-and-trade system of emissions permits that can be redeemed in lieu of paying the carbon tax. The amount of the carbon tax in this proposal would be set each year on the basis of some objective, non-manipulable …