On the Design of Global Refunding and Climate Change

  title={On the Design of Global Refunding and Climate Change},
  author={Hans Gersbach and Ralph Winkler},
We design a global refunding scheme as a new international approach to address climate change. A global refunding system allows each country to set its carbon emission tax, while aggregate tax revenues are partially refunded to member countries in proportion to the relative emission reductions they achieve within a given period. In a simple model we show that a suitably designed global refunding scheme is self-enforcing and achieves the social global optimum, provided that all countries… CONTINUE READING