February 26, 2010
Hourglass models of world-wide problems such as climate change
A simple model of “hourglass” problems is presented. For such problems, the benefit of a national policy measure is propagated to all countries through one single world-wide variable.
The prime example is the effect of the reduction of CO2 emission on the world climate.
Five optimal solutions are given, for various situations and points of view, followed by a comparison with the outcome of permit trading.