Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE (www.oxfordhandbooks.com). © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 14 November 2019

Abstract and Keywords

This chapter presents an economic analysis of climate change and international climate change law. From an economic perspective, the environment becomes a scarce resource which must be allocated between competing ends. The economics of climate change draws mainly on the two foundational insights of economics. The first is that the free exchange of goods tends to move resources to their highest valued use, in which case the allocation of resources is said to be ‘Pareto-efficient’. The second is that economic agents respond to incentives. Economic agents are rational utility maximizers, meaning that they will undertake those actions which raise their level of utility. The chapter examines economist Ronald Coase’s article The Problem of Social Cost, which deals with externalities, the cost or benefit that affects a party who did not choose to incur that cost or benefit, and applies it to pollution and emissions trading.

Keywords: Climate change, Environmental disputes, Pollution, International trade, Regional trade

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.