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To get a climate agreement first set out principles for fair cost-sharing

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In December talks in Paris involving more than 200 countries may result in a new agreement aimed at reducing carbon emissions. In the months leading up to the conference, The Economist will be publishing guest columns by experts on the economic issues involved. Here, Lucas Bretschger of ETH Zurich argues that an initial focus on setting clear principles for fair cost-sharing will clear the way to a broader climate deal.

BOTH climate change and climate policies have a major impact on world income distribution. If nothing is done to address climate change, less developed and vulnerable countries will suffer disproportionately: climate shocks destroy part of their capital stock, making successful economic development even more difficult than it was in the past. Conversely, the adoption of stringent climate policies will mean that carbon-intensive countries will have to carry a substantial policy burden. Yet, the concerns of high climate-policy costs are not fully warranted, as I show in the book “Greening Economy, Graying Society”. Positive growth effects of climate...Continue reading

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