A comparability analysis of global burden sharing GHG reduction scenarios

The distribution of the mitigation burden across countries is a key issue regarding the post‐2012 global climate policies. This article explores the economic implications of alternative allocation rules, an assessment made in the run‐up to the COP15 in Copenhagen (December 2009). We analyse the comparability of the allocations across countries based on four single indicators: GDP per capita, GHG emissions per GDP, GHG emission trends in the recent past, and population growth. The multi‐sectoral computable general equilibrium model of the global economy, GEM‐E3, is used for that purpose. Further, the article also compares a perfect carbon market without transaction costs with the case of a gradually developing carbon market, i.e. a carbon market with (gradually diminishing) transaction costs.