We use an econometrically-estimated multi-region, multi-sector general equilibrium model of the world economy to examine the effects of using a system of internationally-tradable emissions permits to control world carbon dioxide emissions. We focus, in particular, on the effects of the system on flows of trade and international capital. Our results show that international trade and capital flows significantly alter projections of the domestic effects of emissions mitigation policy, compared with analyses that ignore international capital flows, and that under some systems of international permit trading the United States is likely to become a significant permit seller, the opposite of the conventional wisdom.
[In reaction to Donald Trump Jr's tweet on air pollution and the relationship between pollution and socioeconomic status] It’s been well established that poorer folks and minority communities tend to live in areas that are more polluted. This isn't particularly new. [The tweet] contradicts what we know, and it's based in ignorance.
David G. Victor speaks on Deep Decarbonization at CERAWeek 2019.