Economics of global warming: “catch-up” against “mature” economies

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Author: 
Jan-Erik Lane
Abstract: 

The UNFCCC meetings bring together two sets of countries with entirely different economic goals. The first set of late industrializes in the Third World aim at “catch-up”, as they have recently “taken-off”. In an effort to close the affluence gap to the First World. The other set of early industrializes remain content with slow economic growth, protecting life-style and environment values. The COP21 goal of decarburization in the 21rst century is accepted by the first set, only if it does not reduce their catch-up capacity, whereas the send set is generally favorable to move to renewable energy. Thus, the demand for compensation arises. Since global warming was started by the early industrialisers, they should assist the late industrializes technologically and financially with decarburization so that socio-economic development is not hurt. This is the rationale of the Super Fund, promised but not set up yet. This paper analyses the necessity of the huge Super Fund, but also warns about the temptation of some mature economies to renege, i.e. chose defection on their promises to the Third World.

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   Vol. 07, Issue 03, March 2017

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