A REGIONAL ALLOCATION OF WORLD CO2 EMISSION REDUCTIONS

This paper demonstrates two independent methodologies for the regional allocation of world greenhouse gas emission reductions; one based on mathematical programming and the other on a game theoretic method know n as the Shapley value. Both methodologies make use of the solution of a world emission reduction problem that exploits techniques of mathem atical programming to produce an optimal world emission reduction stra tegy, by maximizing an economic utility function. The analysis illustr ates that allocations of regional CO2 emission reductions are not only methodology dependent but also sensitive to targets placed on global CO2 concentrations.