Aldy, J. E., Barrett, S., & Stavins, R. N. (2003). 13+1: A Comparison of Global Climate Change Policy Architectures. Climate Policy , 3 (4), 373-397.Abstract

We critically review the Kyoto Protocol and thirteen alternative policy architectures for addressing the threat of global climate change. We employ six criteria to evaluate the policy proposals: environmental outcome, dynamic efficiency, cost-effectiveness, equity, flexibility in the presence of new information, and incentives for participation and compliance. The Kyoto Protocol does not fare well on a number of criteria, but none of the alternative proposals fare well along all six dimensions. We identify several major themes among the alternative proposals: Kyoto is “too little, too fast”; developing countries (DCs) should play a more substantial role and receive incentives to participate; implementation should focus on market-based approaches, especially those with price mechanisms; and participation and compliance incentives are inadequately addressed by most proposals. Our investigation reveals tensions among several of the evaluative criteria, such as between environmental outcome and efficiency, and between cost-effectiveness and incentives for participation and compliance.

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Aldy, J. E., Baron, R., & Tubiana, L. (2003). Addressing Cost: The Political Economy of Climate Change. In Beyond Kyoto: Advancing the International Effort Against Climate Change (pp. 85-110) . Pew Center on Global Climate Change. Full Text.pdf
Aldy, J. E., & Viscusi, W. K. (2003). The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World. Journal of Risk and Uncertainty , 27 (1), 5-76.Abstract

A substantial literature over the past thirty years has evaluated tradeoffs between money and fatality risks. These values in turn serve as estimates of the value of a statistical life. This article reviews more than 60 studies of mortality risk premiums from ten countries and approximately 40 studies that present estimates of injury risk premiums. This critical review examines a variety of econometric issues, the role of unionization in risk premiums, and the effects of age on the value of a statistical life. Our meta-analysis indicates an income elasticity of the value of a statistical life from about 0.5 to 0.6. The paper also presents a detailed discussion of policy applications of these value of a statistical life estimates and related issues, including risk-risk analysis.

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Aldy, J. E. (2000). Can Annex I Countries Meet Their Emissions Targets at Modest Costs? In C. E. Walker, M. A. Bloomfield, & M. Thorning (Ed.), The Kyoto Commitments: Can Nations Meet Them with the Help of Technology? (pp. 67-73) . Washington, DC, American Council for Capital Formation.