Global Warming and the Allocation of the Costs of Environmental Policies

Abstract

The article examines four principles of cost allocation (cost of mitigation, of adaptation, and of compensation) for environmental policies that aim to address climate change: "the polluter pays", "who benefits pays", "who is able to pay, pays", and "the equal per capita". It shows that they are all problematic. A better case can be built by the joint work of only the two principles of "the polluter pays" and "who benefits pays".