## Abstract

The purpose of this paper is twofold. First, it exhibits that standard tools in the

measurement of income inequality, such as the Lorenz curve and the Gini-index,

can successfully be applied to the issues of inequality measurement of carbon

emissions and the equity of abatement policies across countries. These tools allow policy-makers and the general public to grasp at a single glance the impact of conventional distribution rules such as equal caps or grandfathering, or more sophisticated ones, on the distribution of greenhouse gas emissions. Second, using the Samuelson rule for the optimal provision of a public good, the Pareto-optimal distribution of carbon emissions is compared with the distribution that follows if countries follow Nash-Cournot abatement strategies. It is shown that the Paretooptimal distribution under the Samuelson rule can be approximated by the equal cap division, represented by the diagonal in the Lorenz curve diagram.

measurement of income inequality, such as the Lorenz curve and the Gini-index,

can successfully be applied to the issues of inequality measurement of carbon

emissions and the equity of abatement policies across countries. These tools allow policy-makers and the general public to grasp at a single glance the impact of conventional distribution rules such as equal caps or grandfathering, or more sophisticated ones, on the distribution of greenhouse gas emissions. Second, using the Samuelson rule for the optimal provision of a public good, the Pareto-optimal distribution of carbon emissions is compared with the distribution that follows if countries follow Nash-Cournot abatement strategies. It is shown that the Paretooptimal distribution under the Samuelson rule can be approximated by the equal cap division, represented by the diagonal in the Lorenz curve diagram.

Original language | English |
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Place of Publication | Utrecht |

Publisher | UU USE Tjalling C. Koopmans Research Institute |

Number of pages | 27 |

Publication status | Published - Nov 2008 |

### Publication series

Name | Discussion Paper Series / Tjalling C. Koopmans Research Institute |
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No. | 33 |

Volume | 08 |

ISSN (Electronic) | 2666-8238 |

## Keywords

- carbon emission
- climate change
- Gini
- global warming
- Lorenz curve
- Samuelson rule