We review the optimal pattern of carbon emission abatements across countries in a simple multi-country world. We model explicitly the fact that the atmosphere is a public good. Within this framework we establish conditions for it to be necessary for optimality that the marginal cost of abatement...

Environment and economy-no conflict -- Market mistakes and how unpaid-for external effects are killing us -- Climate change: "the greatest external effect in human history" -- How to deal with external effects -- Solving the climate problem -- Everyone's property is no one's property -- Natural...