Fair international protocols for the abatement of GHG emissions

Abstract

We study the design of fair international protocols for the abatement of GHG emissions. We formulate normative principles, pertaining to countries' population, emission history, and business as usual emissions, as axioms for allocation rules. We show that combinations of these axioms characterize the so-called equal per capita allocation rules, with or without historical accountability. The allocations provided by these rules are in stark contrast with the allocation suggested by the Kyoto Protocol, which is close to the allocation in proportion to the current and business-as-usual emissions, suggested by the equal per emission (grandfathering) rule. As we illustrate, the equal per capita allocations admit more emissions to developing countries with large populations. And, with historical accountability, developed countries with large historical emissions are clearly penalized. • Axiomatic approach for designing fair international protocols tackling climate change. • Historical accountability and equal treatment endorse historical equal per capita rule. • History independence and equal treatment endorse equal per capita rule. • Fair protocols offer more allowances to developing countries than Kyoto Protocol. • Kyoto protocol is close to grandfathering allocation proportional to BAU emissions.