Allocating CO 2 emissions: a dynamic claims problem

Eun Jeong Heo, Jinhyuk Lee

Research output: Contribution to journalArticlepeer-review

4 Scopus citations


We analyze carbon dioxide emissions in a dynamic framework of conflicting claims problem (O’Neill in Math Soc Sci 2:345–371, 1982). We consider five allocation rules of the standard claims problem, taking a target carbon dioxide budget as an endowment to divide and the business-as-usual emissions of countries as a claims vector. The claims problem of one period is linked to another through economic growth, as an emission allocation affects the countries’ national income, which then affects their claims of the next period. We provide a numerical analysis of this framework to illustrate how an emission allocation influences economic growth cumulatively. By comparing the growth paths, we evaluate the allocation rules by means of convergence, equality, and efficiency criteria.

Original languageEnglish
Pages (from-to)163-186
Number of pages24
JournalReview of Economic Design
Issue number1
StatePublished - Feb 2023


  • CO emissions
  • Claims problem
  • Climate change policy
  • GDP per capita
  • Growth


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