Global Warming and Economic Development A Holistic Approach to Inter

The computer revolution both in the hardware as well as in software has made it possible for economists to analyze complex issues which could not be solved in the past by analytical methods. A large library of numerical techniques are now available to eco

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Advances in Computational Economics VOLUME 2

SERIES EDITORS Hans Amman, University of Amsterdam, Amsterdam, The Netherlands Anna Nagumey, University of Massachusetts at Amherst, USA

EDITORIAL BOARD Anantha K. Duraiappah, European University Institute John Geweke, University of Minnesota Manfred Gilli, University of Geneva Kenneth L. Judd, Stanford University David Kendrick, University of Texas at Austin Daniel McFadden, University of California at Berkeley Ellen McGrattan, Duke University Reinhard Neck, Universitiit Bielefeld Adrian R. Pagan, Australian National University John Rust, University of Wisconsin Berc Rustem, University of London Hal R. Varian, University of Michigan

The titles published in this series are listed at the end of this volume.

Global Warming and Economic Development A Holistic Approach to International Policy Co-operation and Co-ordination by

Anantha K. Duraiappah European University Institute, Florence, Italy

..

SPRINGER-SCIENCE+BUSINESS MEDIA, B.V.

Library of Congress Cataloging-in-Publication Data Duraiappah. Anantha K. Global warming and economic development: a holistic approach to international policy co-operation and co-ordination / by Anantha K. Duraiappah. p. cm. -- (Advances in computational economics; v. 2) Based on the author's thesis (doctoral)--University of Texas. Austin. Includes bibliographical references and index. ISBN 978-94-010-4771-5 ISBN 978-94-011-1757-9 (eBook) DOI 10.1007/978-94-011-1757-9

1. Environmental policy--Economic aspects--Mathematical models. 2, Environmental policy--International cooperation--Mathematical models. 3. Global warming--Econom\c aspects--Mathematical models. 4. Economic development--Environmental aspects--Mathematical models. I. Title. II. Series. HC79.E5D86 1993 338.9--dc20 92-47021

ISBN 978-94-010-4771-5

Printed on acid-free paper

All Rights Reserved © 1993 Springer Science+Business Media Dordrecht Originally published by Kluwer Academic Publishers in 1993 Softcover reprint of the hardcover I st edition 1993 No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without written permission from the copyright owner.

To my grandparents, parents, and wife

Table Of Contents

List of Tables ............................................................................................... xiii List of Figures ................................................................................................ xv Preface ........................................................................................................ xvii Introduction .................................................................................................... 1 Chapter One: The Global Warming Problem 1.1

Introduction ............................................................................... 9

1.2

The Greenhouse Effect.. ...........................................................