Inequality in CO2 Emissions Between Poor and Rich Countries

Abstract

Threatened by global warming, most countries agree on the importance of global greenhouse gas emissions reductions. Yet disagreements persist on the distributional issues involved. Poor countries challenge historical and current inequalities in per capita emissions. Rich countries fear the disruptions that may accompany future reductions of their emissions. This article measures the inequality in per capita CO2 emissions from fossil fuel use and cement production and the contributions of poor and rich countries to this inequality through a group decomposition of the Gini index 1960 to 1990. Emissions became only marginally less unequal over the period. The impact on inequality of proposals to curtail future emissions through reductions proportional to current emissions, gross domestic product, and population, as well as fixed and sliding combinations, are discussed. Finally, it is shown how the Gini analysis could be applied to quasi-emissions, which incorporate emissions transactions through a tradable emissions permit system and/or joint implementation.